Tags: foreign | central banks | united states | treasurys

Central Banks Pick Up Fewer US Treasury Securities: Fed Data

Friday, 10 April 2015 07:27 AM


Foreign central banks increased their ownership of U.S. Treasury securities more slowly in the latest week, but still brought their Treasuries holdings at the Federal Reserve to their highest level in three months, Fed data on Thursday showed.

Holdings of foreign central banks' Treasuries at the Fed rose $1.08 billion to $2.964 trillion on April 8, following a record $62.9 billion increase the previous week, according to Fed data.

The back-to-back weekly increases followed four weeks of declines that took overseas central bank holdings of Treasurys at the Fed to the lowest level in a year.

The rebound in Treasurys holdings coincided with a stalling in the U.S. dollar after the Fed signaled it was not rushing to raise short-term interest rates and a disappointing March payrolls report.

Analysts have said some overseas central banks have drawn down their dollar reserves to defend their currency pegs or to stem further depreciation against the dollar.

Data released on Thursday also showed Japanese investors sold foreign bonds at a record rate of 3.07 trillion yen in the week ended April 3, a move which analysts attributed to balance sheet needs at the end of the Japanese fiscal year on March 31.

Foreign central banks' holdings in corporate bonds and other private U.S. debt rose slightly to $43.54 billion in the latest week from $43.49 billion.

However, those banks' holdings in agency debt and mortgage-backed securities dipped to $284.51 billion from $284.77 billion.

The Fed's custody holdings of all U.S. bonds for overseas central banks rose to $3.292 trillion from $3.291 trillion a week earlier.

Foreign central banks do not keep all their holdings of U.S. bonds at the Fed. There has been speculation that some countries including China have increased their holdings outside of the Fed's custody.

© 2019 Thomson/Reuters. All rights reserved.

   
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Foreign central banks increased their ownership of U.S. Treasury securities more slowly in the latest week, but still brought their Treasurys holdings at the Federal Reserve to their highest level in three months, Fed data on Thursday showed.
foreign, central banks, united states, treasurys
295
2015-27-10
Friday, 10 April 2015 07:27 AM
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