Foreign central banks' US debt holdings fall - Fed

NEW YORK, Sept 22 Thu Sep 22, 2011 4:30pm EDT

NEW YORK, Sept 22 (Reuters) - Foreign central banks' overall holdings of U.S. marketable securities at the Federal Reserve fell 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 fell $6.882 billion in the week ended Sept 21, to stand at $3.456 trillion.

The breakdown of custody holdings showed overseas central banks' holdings of Treasury debt fell by $7.754 billion to stand at $2.722 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 $871 million to stand at $734.3 billion.

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For balance sheet graphic: link.reuters.com/buf92k

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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 two foreign holders of Treasuries.

The full Fed report can be found on: here (Reporting by Gertrude Chavez-Dreyfuss; Editing by Padraic Cassidy)