- More than 200 central banks and other foreign entities like sovereign wealth funds keep Treasuries and other assets in the custody of the New York Federal Reserve. Those holdings declined by $17 billion last week and have fallen by $48 billion since late March, just before Trump’s tariffs sparked a confounding bond selloff.
Markets are watching closely for any signs foreign investors are souring on U.S. debt. A pullback in bond buying from central banks could send borrowing costs higher if other investors don’t fill the gap, potentially putting the U.S. government in a tight spot.
