Foreign Central Banks Dump Treasuries as Their Share Collapses to a 33-Year Low

US Treasuries Have Become Unappetizing for Foreign Central Banks and Governments

Foreign central banks and governments have lost their appetite for US Treasuries. In July, their holdings fell to $3.77 trillion—roughly 2012 levels—while the outstanding Treasury market has tripled. Their share of marketable Treasuries has collapsed from over 38% at its 2007-2009 peak to just 12.8%, the lowest since 1993. Meanwhile, opaque financial centers like the UK, Cayman Islands, and Ireland now hold 35% of all foreign Treasuries, often on behalf of US hedge funds and companies.