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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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From: russwinter7/20/2006 6:10:40 PM
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Foreign cenbanks net sellers of Treasuries in week
Thu Jul 20, 2006 04:31 PM ET

NEW YORK, July 20 (Reuters) - Foreign central banks were net sellers of Treasury bonds last week, but their net purchases of agency debt led to an increase in overall holdings of U.S. securities, Federal Reserve data showed on Thursday.

The Fed said its holdings of Treasury and agency debt kept for overseas central banks rose by $5.46 billion in the week ended July 19, to stand at a total $1.636 trillion.

The breakdown of custody holdings showed overseas central banks sold $37 million in Treasury debt to stand at a total $1.111 trillion.

The foreign institutions showed an appetite for securities from government-sponsored agencies like Fannie Mae (FNM.N: Quote, Profile, Research) and Freddie Mac (FRE.N: Quote, Profile, Research) , adding $5.496 billion to their holdings, to stand at a total $525.2 billion.

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:

federalreserve.gov
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