WEEKLY FED BALANCE SHEET REVIEW. A STRONG CLOSE IN MAY
. Federal Reserve: "Factors Affecting Reserve Balances", May 23

- Fed's Treasuries holdings: $780.0bn (+4.2bn)
- Other central banks' Treasuries holdings: $1,221.7bn (-$3.0bn) (*)
- Other central banks' agency securities: $723.0bn (+$7.8bn) (*)
- Mackinlay's Global Dollar Liquidity Measure: $2,724.8bn (+$8.9bn)

(*) Off-balance-sheet items.
agustin_mackinlay@yahoo.com
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While May 2007 was not the strongest month on record in terms of liquidity growth, it was a pretty decent one. Central banks globally added $31bn to their holdings, as measured by custodial data and the Fed's own balance sheet. Our Global Dollar Liquidity Measure is growing at a 14.16% annual rate, the strongest showing since ... March 2005. Not bad!