Over 200 central banks and foreign institutions have reportedly withdrawn considerable US Treasuries from the New York Federal Reserve as custody holdings fell by £12.6 billion ($17 billion) last week and £35.7 billion ($48 billion) since late March, adding to US dollar stability concerns. The trends intensified with US President Donald Trump's tariff play that sparked global trade tensions and triggered a market crash.
Central banks and entities like sovereign wealth funds keep assets like Treasuries in the custody of the New York Fed. The massive withdrawal has pushed up Treasury yields, possibly implying a weakening foreign demand for US debt.
