Treasuries' Worst Drop in 2010 Driven by Central Bank Sales: Chart of Day

22 December 2010  Bloomberg.com

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 Central banks outside the U.S. sold Treasuries at the end of November and in December for the first time since June, spurring the biggest monthly loss in a year for the government securities.

The CHART OF THE DAY graphs Treasuries held at the Federal Reserve by foreign central banks and governments. It also shows U.S. 10-year yields climbing in December to a seven-month high. So-called custody holdings rose to a record $2.611 trillion on Nov. 17, according to the U.S. central bank. The figure dropped $2.25 billion in the last week of November, and foreign official holders have sold $1.5 billion of Treasuries in December.

http://www.bloomberg.com/news/2010-12-22/treasuries-worst-drop-in-2010-driven-by-central-bank-sales-chart-of-day.html