Central banks have dumped $48 billion in Treasuries as foreign wealth officials divorce the dollar

Article Synopsis

Foreign investors, including central banks, are showing signs of pulling back from U.S. Treasury bonds, raising concerns about who will fund America’s growing debt. Despite record foreign holdings in March, recent data shows a sharp $63 billion drop in foreign-held U.S. assets at the Federal Reserve since late March.Experts say this shift is unusual, especially with the dollar weakening — a time when such sales typically don’t occur. Rising trade tensions and diversification away from U.S. assets may be driving the decline. If both official and private foreign buyers retreat further, it could push borrowing costs higher and strain the U.S. economy.

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