Hoban ‘Wash’ Washburn: This landing is gonna get pretty interesting.
Capt. Malcolm Reynolds: Define “interesting”.
Hoban ‘Wash’ Washburn: [deadpan] Oh God, oh God, we’re all going to die?
Come to think of it, “Serenity” involved money, and folks in power trying to cover up a dumb risky mistake. Well, Wednesday turned out to be a paranoia trifecta, even before Environment Canada’s weather office put NYNY on the hook for Sandy: 3) It’s stable and it’s precarious; 2) Your smart phone is your ankle monitor; 1) Pay no attention to that Alberich guy behind the curtain.
The Fed’s own MBS number rose $5.765 billion while the treasuries held by foreign central banks dropped quite a bit and their agencies number rose slightly.
This week’s Reuters report1 is, as usual, based on the weekly update from the NY Fed’s H.4.1 table site.2 Here is Doom’s updated CSV version3 of the agencies and treasuries foreign central bank holdings data set.
Treasuries swung to a biggish $8.111 billion lose after a couple of weeks of huge gains.
Agencies stopped the recent bleeding, eaking out $0.257 billion of growth.
*Agen-FM: The dotted line is the foreign central banks’ Agency Debt holdings reduced by the level of the Fed’s own MBS holdings. Since the FRBNY itself is a lightly audited peculiar amalgam of foreign & domestic, central and private bank I think it might be useful to consider the hypothesis that for a while starting in January 2009 the Fed’s MBS holdings were being quietly deemed to be “foreign.” That is, for the first half of ’09 the dotted line seems more sensible than the red one.
The net of US obligations drained at over $1B / day, down $7.855 billion for the week.
Twist’s ratio graphs oscillated up.
In spite of that big treasuries loss the Setser numbers again diverged moderately; the anniversary period put up some pretty hairy results.
Notes and References
: “Foreign central banks’ US debt holdings fall – Fed”, Reuters, October 25, 2012.