Central banks could own big chunk of US Tsys-UBSW

RESEARCH - Global central banks could own the entire supply of marketable U.S. debt by the end of 2006 as growing foreign exchange reserves force them to buy more ultra-safe U.S. government debt, according to a survey of central banks conducted by UBS Warburg.

Mounting foreign exchange reserves resulting from greater global trade and its accompanying economic growth have led many conservative central banks to invest their reserves in risk-free U.S. Treasuries, the report said.

Central banks could

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Geoeconomic reserve management

The world order is evolving. Whether, and how, the international economy remains integrated or shifts into spheres of influence has consequences for central bank policy and reserve management.

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