Fed’s New Repo Measures Followed a $100 Billion Treasury Exodus
- Record selling by official accounts seen in Fed data for March
- Fed’s latest repo measures seen as an effort to halt fire sale
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The Federal Reserve is trying to call time on a fire sale of Treasuries by foreign governments and central banks.
Foreign official holders of Treasuries dumped more than $100 billion in the three weeks to March 25, on course for the biggest monthly drop on record, according to weekly Fed custody data that captures much of the pandemic-fueled turmoil.