Fed balance sheet shrinks in latest week

NEW YORK Fri Nov 30, 2012 6:31pm EST

NEW YORK (Reuters) - The Federal Reserve's balance sheet shrank in the latest week with reduced holdings of Treasuries and agency mortgage-backed securities, Fed data released on Friday showed.

The Fed's balance sheet - a broad gauge of its lending to the financial system - stood at $2.834 trillion on November 28, down from $2.853 trillion on November 21.

The Fed's holdings of Treasuries totaled $1.647 trillion as of Wednesday compared with $1.650 trillion the previous week.

The Fed's ownership of mortgage bonds guaranteed by Fannie Mae (FNMA.OB), Freddie Mac (FMCC.OB) and the Government National Mortgage Association (Ginnie Mae) totaled $883.54 billion compared with $900.58 billion the previous week.

The Fed's holdings of debt issued by Fannie Mae, Freddie Mac and the Federal Home Loan Bank system was $79.28 billion, unchanged from a week earlier.

The Fed's overnight direct loans to credit-worthy banks via its discount window averaged $11 million a day during the week from a $5 million a day average rate the prior week.

(Reporting by Chris Reese; Editing by Chizu Nomiyama)

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