BofA: Cracks Emerge in Foreign Demand for US Treasuries

Bank of America has stated that central banks around the world have been selling off U.S. Treasuries since March, indicating that they are diversifying away from dollar-denominated assets. As of the week ending June 11, the average holdings of U.S. Treasuries by global central banks and other official institutions at the Federal Reserve Bank of New York had decreased by $1.7 billion, bringing the total decline since the end of March to $4.8 billion. In addition, foreign holdings of the Federal Reserve's reverse repurchase agreement facility have also dropped by about $1.5 billion since the end of March.