U.S. Fed balance sheet shrinks in the latest week

NEW YORK Thu Jan 31, 2013 4:30pm EST

NEW YORK Jan 31 (Reuters) - The U.S. Federal Reserve's balance sheet shrank in the latest week with reduced holdings of mortgage-backed securities, Fed data released on Thursday showed.

The Fed's balance sheet - a broad gauge of its lending to the financial system - stood at $2.991 trillion on Jan. 30, compared with a record-large $2.994 trillion on Jan. 23.

The Fed's ownership of mortgage bonds guaranteed by Fannie Mae, Freddie Mac and the Government National Mortgage Association (Ginnie Mae) totaled $965.78 billion compared with $983.17 billion the previous week.

The Fed's holdings of Treasuries totaled $1.710 trillion as of Wednesday versus $1.697 trillion the previous week.

The Fed's holdings of debt issued by Fannie Mae, Freddie Mac and the Federal Home Loan Bank system was $75.11 billion, which was unchanged on the week.

The Fed's overnight direct loans to credit-worthy banks via its discount window averaged $5 million a day, which was also unchanged from the prior week.