Overseas central banks’ holdings of U.S. securities fall by $10.1 billion

us flagRecent data from the Federal Reserve revealed foreign central banks’ holdings in U.S. securities fell by $10.1 billion for the week ending March 27, dropping the total to $3.3 trillion.

Foreign central banks’ holdings of U.S. Treasury debt also decreased by $9.4 billion, dropping the total to $2.9 trillion, and holdings of securities issued or guaranteed by government-controlled mortgage giants Fannie Mae and Freddie Mac decreased by $1.3 billion to total $301 billion, Reuters reports.

Additionally, “other” securities, including corporate bonds, asset-backed securities, commercial paper and U.S. Treasury securities, held by foreign institutions increased in face value by $540 million to reach $38 billion.

In recent years, foreign central banks, in particular those in Japan and China, have been the biggest buyers of U.S. debt, and the institutions now own more than 25 percent of marketable securities, according to Reuters.

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