WEEKLY FED BALANCE SHEET REVIEW. JUST SWAPPIN' ...
. Federal Reserve: "Factors Affecting Reserve Balances", March 28

- Fed's Treasuries holdings: $775.6bn (+$2.3bn)
- Other central banks' Treasuries holdings: $1,210.8bn (-$6.6bn) (*)
- Other central banks' agency securities: $668.9bn (+$10.5bn) (*)
- Mackinlay's Global Dollar Liquidity Index: $2,655.4bn (+$6.1bn)

(*) Off-balance-sheet items.
agustin_mackinlay@yahoo.com
__________________

The only remarkable feature of last week's Fed weekly balance sheet is the fact that foreign central banks continue to swap Treasuries for agency securities. A year ago, holdings of agency securities made up 38% of the assets held in custody at the Federal Reserve Bank of New York. Now, they represent ... 55% of the total. Meanwhile, our Global Dollar Liquidity Index grows at a 12.3% annual rate, the fastest pace since August 2005.