Foreign central banks' U.S. debt holdings rise: Fed

NEW YORK Fri Jan 4, 2013 3:01am IST

Stocks

   

NEW YORK (Reuters) - Foreign central banks' overall holdings of U.S. marketable securities at the Federal Reserve rose in the latest week, data from the U.S. central bank showed on Thursday.

The Fed said its holdings of U.S. securities kept for overseas central banks rose $2.2 billion in the week ended January 2, to stand at $3.240 trillion.

The breakdown of custody holdings showed overseas central banks' holdings of Treasury debt rose by $2.1 billion to stand at $2.9 trillion.

Foreign institutions' holdings of securities issued or guaranteed by the biggest U.S. mortgage financing agencies, including Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB), rose by $187 million to stand at $311.2 billion.

The Fed said its holdings of so-called "other" securities held in custody and reported at face value fell $66 million to stand at $36 billion. These securities include non-marketable U.S. Treasury securities, supranationals, corporate bonds, asset-backed securities and commercial paper.

Overseas central banks, particularly those in Asia, have been huge buyers of U.S. debt in recent years and own more than a quarter of marketable Treasuries. China and Japan are the biggest foreign holders of Treasuries.

The full Fed report can be found on: here

**Please note that in the week ended November 15, 2012 the Fed changed how it calculates the data covering securities held in custody for foreign official and international accounts.

Custody holdings of U.S. Treasuries held by the central bank does not include those securities pledged by the Fed as "collateral in reverse repurchase agreements conducted with foreign official and international accounts," the Fed advised.

It added that the data now incorporates "inflation compensation on Treasury Inflation-Protected Securities (TIPS), which captures the inflation adjustment to original face value of TIPS over time."

The calculation for agency debt holdings was revised to reflect current face value rather than original face value as previously reported, the Fed said.

(Reporting By Daniel Bases; Editing by Chizu Nomiyama)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Iron Ore Mining

REUTERS SHOWCASE

Tracking Markets

Tracking Markets

Sensex, Nifty surge to record high; Sesa gains  Full Article 

Rupee Falls

Rupee Falls

Rupee sees worst single-day fall in over a month  Full Article 

TCS-Mitsubishi

TCS-Mitsubishi

TCS, Mitsubishi to form software services company  Full Article 

Deal Talk

Deal Talk

Hero Motor to invest $40 million in Bangladesh joint-venture   Full Article 

Telecom Sector

Telecom Sector

RIL telecoms unit in tower lease pact with ATC  Full Article 

Japanese Economy

Japanese Economy

Japan exports growth slows sharply, keeps pressure on BOJ to act  Full Article 

A Tough Sell

A Tough Sell

Insurance against a China financial crisis  Full Article 

Tyre Debris

Tyre Debris

Bangalore-bound Malaysia Airlines plane turns back after tyre burst on takeoff  Full Article 

Digital Currency

Digital Currency

At Mt. Gox bitcoin hub, 'geek' CEO sought both control and escape  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage