U.S. Fed's balance sheet shrinks in latest week

NEW YORK Oct 29 (Reuters) - The U.S. Federal Reserve's balance sheet shrank in the latest week as holdings of commercial paper and liquidity swaps declined, Fed data showed on Thursday.

The Fed's balance sheet liabilities -- a broad gauge of its lending to the financial system -- fell to $2.144 trillion on Wednesday from $2.183 trillion a week ago.

The central bank's Commercial Paper Funding Facility assets fell to $19.02 billion on Wednesday, sharply down from the previous week's $39.43 billion.

The Fed's liquidity swap lines with foreign central banks to provide dollars fell to an average of $33.32 billion per day in the week ended Oct. 28 versus $41.64 billion per day in the prior week.

The Fed's holding of agency mortgage-backed securities totaled $774.07 billion on Wednesday from $776.87 billion a week earlier, while its Treasuries ownership was $774.56 billion from $773.49 billion a week earlier.

Overnight direct loans to banks via the Fed's discount window averaged $107.63 billion per day in the week ended Oct. 28 versus $108.17 billion per day in the prior week.

Primary credit borrowings averaged $22.58 billion in the week to Oct. 28 versus $23.84 billion in the week to Oct 21, according to Fed data. (Reporting by Chris Reese; Editing by James Dalgleish)