NEW YORK Aug 28 Foreign central banks sold
$3.96 billion in agency debt this week, according to Federal
Reserve data, adding yet more evidence that overseas investors
are worried about the troubled mortgage giants.
The drop marked a sixth straight week of declines in
offshore central bank holdings of bonds issued by
government-sponsored entities (GSEs) like Fannie Mae and
Freddie Mac, which have recently taken center stage in the U.S.
It brought the total five-week decline to about $17.6
Overall, overseas institutions' total holdings of U.S.
debt, including Treasury notes and bonds as well as agencies,
rose $13.57 billion on the week to $2.409 trillion.
The overall rise came because foreign central banks bought
government debt rather than agency debt, adding $17.53 billion
to Treasury holdings on the week for a total of $1.441
Overseas central banks, particularly those in Asia, have
been huge buyers of U.S. debt in recent years, and own over a
quarter of marketable Treasuries.
The full Fed report can be found on:
(Reporting by Burton Frierson, Editing by Chizu Nomiyama)