UPDATE: Yet another Google News front page drone strike
With a soggy Ground Zero and Mr. Global Warming starring on Broadway, Superstorm Sandy has effected a qualitative change in the conversation. She’s also proved an impact player in America’s fiscal and economic planning, which a week ago was based on re-bubbling real estate values, above all in NYNY. Fortunately, the Fed’s got the city’s back, backed by endless tons of gold reserves which, luckily, were largely deposited for safekeeping by this not terribly with-it little guy …
The Fed’s own MBS number swung to a huge $16.030 billion drop while the treasuries held by foreign central banks rose by about that much and their agencies number was flat.
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 returned to their huge gains, growing a robust $16.323 billion.
Agencies resumed its recent deterioration, dropping a modest $0.545 billion
*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 grew $15.778 billion.
Twist’s ratio graphs swung to a moderate drop
In spite of that big treasuries gain the Setser treasury number plunged due to the huge add at the anniversary date.
Notes and References
: “Foreign central banks’ US debt holdings rise – Fed”, Reuters, November 1, 2012.