Foreign central bank U.S. debt holdings rise - Fed

NEW YORK | Thu Aug 26, 2010 4:40pm EDT

NEW YORK Aug 26 (Reuters) - Foreign central banks' ownership of U.S. Treasuries rose in the latest week but holdings of agency securities fell, data from the U.S. central bank showed on Thursday.

The combined holdings of Treasuries and agency securities by foreign central banks at the Federal Reserve rose by $7.83 billion to $3.197 trillion in the week ended Aug. 25.

Treasuries held by overseas central banks at the Fed rose by $14.58 billion to $2.38 trillion.

Foreign central banks' holdings of securities issued or guaranteed by the biggest U.S. mortgage financing agencies, including Fannie Mae (FNMA.OB) and Freddie Mac FMCC.N, fell by $6.75 billion to $816.34 billion in the latest week.

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

The full Fed report can be found on: here (Reporting by Ellen Freilich: )

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