NEW YORK, March 13 Foreign central banks'
overall holdings of U.S. marketable securities at the Federal
Reserve plunged in the latest week, with a particularly sharp
drop in Treasuries, data from the U.S. central bank showed on
The Fed said its holdings of U.S. securities kept for
overseas central banks sank by $106.142 billion in the week
ended March 12, to stand at $3.206 trillion.
The tumble brings the total on deposit with the Fed to the
lowest level since December 2012.
The breakdown of custody holdings showed overseas central
banks' holdings of Treasury debt fell by $104.535 billion to
stand at $2.855 trillion in the week.
Foreign institutions' holdings of securities issued or
guaranteed by the biggest U.S. mortgage financing agencies,
including Fannie Mae and Freddie Mac,
slipped by $797 million to stand at $306.301 billion.
The Fed said its holdings of "other" securities held in
custody fell by $809 million to stand at $44.609 billion. These
securities include non-marketable U.S. Treasury securities,
supranationals, corporate bonds, asset-backed securities and
The U.S. central bank has been slowing its purchases of
Treasuries and mortgage-backed securities recently as the
world's largest economy gains momentum.
From $85 billion per month in purchases last year, the Fed
is now buying $65 billion per month and is expected to keep
reducing those purchases throughout the year.
The Pimco Total Return Fund, the world's largest bond fund,
slashed its holdings of mortgages in February to the lowest
level since at least late 2011 on bets that the Federal Reserve
will conclude those bond purchases this year.
That comes even as jitters over a standoff in Ukraine have
helped take yields on 10-year Treasuries back below
The full Fed report can be found on: