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Foreign c.banks US Treasury holdings up in week-Fed

Thu Jun 18, 2009 4:32pm EDT

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NEW YORK, June 18 (Reuters) - Foreign central banks' holdings of U.S. debt at the Federal Reserve rose in the latest week on the back of a jump in Treasuries on their accounts, data from the U.S. central bank showed on Thursday.

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The combined holdings of Treasuries and agency securities by foreign central banks at the Fed rose $6.394 billion to total $2.752 trillion in the week ended June 17.

Treasuries held by overseas central banks at the Fed jumped $10.648 billion to $1.946 trillion.

However, holdings of securities issued or guaranteed by the two biggest U.S. mortgage financing sources, Fannie Mae (FNM.P) and Freddie Mac (FRE.P), fell $4.254 billion to $806.8 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. China recently overtook Japan as the biggest such buyer.

The full Fed report can be found on:

here

(Reporting by Burton Frierson, Editing by Chizu Nomiyama)



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