NEW YORK, April 4 Foreign central banks' overall
holdings of U.S. marketable securities at the Federal Reserve
rose in the latest week, data from the U.S. central bank showed
The Fed said its holdings of U.S. securities kept for
overseas central banks rose $8.9 billion in the week ended April
3, to stand at $3.3 trillion.
The breakdown of custody holdings showed overseas central
banks' holdings of Treasury debt rose by $9.4 billion to stand
at $3.0 trillion.
Foreign institutions' holdings of securities issued or
guaranteed by the biggest U.S. mortgage financing agencies,
including Fannie Mae and Freddie Mac, fell
by $428 million to stand at $301 billion.
The Fed said its holdings of so-called "other" securities
held in custody and reported at face value fell by $44 million
to stand at $38 billion. These securities include non-marketable
U.S. Treasury securities, supranationals, corporate bonds,
asset-backed securities and commercial paper.
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 foreign holders of Treasuries.
** Please note that in the week ended Nov. 15, 2012, the Fed
changed how it calculates the data covering securities held in
custody for foreign official and international accounts.
Custody holdings of U.S. Treasuries held by the central bank
does not include those securities pledged by the Fed as
"collateral in reverse repurchase agreements conducted with
foreign official and international accounts," the Fed advised.
It added that the data now incorporates "inflation
compensation on Treasury Inflation-Protected Securities (TIPS),
which captures the inflation adjustment to original face value
of TIPS over time."
The calculation for agency debt holdings was revised to
reflect current face value rather than original face value as
previously reported, the Fed said.