From Yahoo Finance: 2025-06-20 23:30:00

More than 200 central banks and foreign entities have withdrawn a substantial amount of U.S. Treasuries from the New York Federal Reserve, raising concerns about the stability of the U.S. dollar. The New York Fed’s custody holdings of U.S. Treasuries have dropped by $17 billion in the last week and $48 billion since late March. Foreign private investors are also withdrawing from the Treasury securities market, with a $15 billion decline in participation in the reverse repurchase facility. This trend could lead to higher yields to attract buyers, affecting interest rates across the economy.

The recent withdrawal of U.S. Treasuries by central banks and foreign entities raises concerns about the U.S. dollar’s stability and its impact on the global economy. The rise in Treasury yields signals a weakening foreign demand for U.S. debt, potentially increasing borrowing costs for the U.S. and impacting various sectors of the economy. The historical relationship between the U.S. dollar and Treasury yields has seen a significant divergence since April 2025, indicating a shift in global confidence in U.S. assets. This trend could have far-reaching implications for the U.S. economy.



Read more at Yahoo Finance: Over 200 Central Banks Reportedly Dump $48 Billion In US Treasuries Amid Concerns Over Dollar’s Stability: ‘The Drop Is Unusual’