The Federal Home Loan Bank System continued growing its holdings in mortgage-backed securities during the second quarter of the year, reporting $127.8 billion worth of MBS, up 2.7 percent from the previous quarter, according to an analysis and ranking by Inside The GSEs, based on data provided by the Federal Housing Finance Board. Of that total, government-sponsored enterprise MBS reached $45.2 billion, compared to $44.3 billion for the first quarter, and $43.1 billion for year-end 2005.