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NY Fed: Foreign Central Banks Sell $3 bn of Treasurys
Thursday, August 14, 2008 | eMail ArticleeMail Article | Follow ProphecyResCorp on Twitter Follow Goldmau On Twitter
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Foreign central banks' sold U.S. Treasurys and added modestly to their agency holdings in the week ended Aug. 13. Average daily custody holdings of U.S. Treasurys for foreign official accounts held by the Federal Reserve fell by $3 billion to about $1.416 trillion. At the same time, the weekly average of the Fed's custody holdings of agency securities rose by $2 billion to $979.054 billion.

On a Wednesday-to-Wednesday basis, custody holdings of U.S. government securities fell by $6 billion to about $2.394 trillion. Foreign central banks sold $828 million of Treasurys and sold $5.43 billion of agency securities. The data cover investments held at the Fed on behalf of foreign central banks.



DowJones.com

Goldmau.com comment:

With Central banks are selling US Treasuries from previous weeks' buying, we should see that $USD will stabilize and depreciate steadily after the massive rally in the past days. Consequently, the inverse relationship between $USD and commodity price will provide a support for the correction in commodity.

Commentary courtesy David Cai, Goldmau.com analyst.

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