Fed says foreign central banks buying record debt

Holdings of U.S. debt by foreign central banks have hit a new record, the Federal Reserve said on Thursday 4 March, the 19th straight week that purchases of Treasury and agency paper have risen.

The Fed said its total holdings of Treasury and agency debt kept for central banks abroad rose $14.253 billion to $1.158 trillion in the week ended March 3.

Last week Fed Chairman Alan Greenspan warned that massive purchases of U.S. assets by the central banks of Japan and China could raise problems for