Central banks’ balance sheets start to shrink _ Financial Times.pdf

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The Fed's holdings of Treasuries have fallen by $150bn year on year © Reuters Kate Allen and Keith Fray YESTERDAY Market dashboard The QE retreat Central banks’ balance sheets start to shrink Asset holdings fall relative to government debt as retreat from QE gets under way
Central banks that have engaged in a mass programme of bond-buying in a bid to stimulate the global economy have seen the size of their balance sheets begin to fall for the first time in a decade, as their withdrawal from the market begins to take effect. The assets on leading central banks’ balance sheets now equate to 31 per cent of their governments’ debt, marginally down from 32 per cent last year, according to analysis by the Financial Times. The Bank of Japan’s holdings are proportionately the largest, amounting to 35 per cent of outstanding Japanese government debt; the European Central Bank’s assets equate to a quarter of

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