Central Banks’ Agencies Selloff Decelerates in 8th Week
Earlier today Reuters reported [1] an eighth straight week of net sales of agency debt by foreign central banks. This week’s reduction was only $2.00 billion, down significantly from the previous week’s $9.75 billion. Reuters extracted the data from FRBNY’s weekly statistical release H.4.1 [2] and Doom has added the last week’s data to our CSV file going back to early 2000.[3]
Central banks bought a net $1.26 billion of treasuries, resulting in a small net selloff of just $0.74 billion of US obligations.[1]
Yesterday Doom reported that central bank proportional representation at Wednesday’s record Fannie Mae bill sale was way down from the previous sale.
In a comment under that post I cited an India Times story that quoted an analyst as saying that “[f]oreign investors almost certainly were buyers of agency debt in the secondary market in recent days; the mammoth rally [in agency debt price] could not have […]
Original post by John M.
