Foreign US Treasuries held in Fed custody are down to $2.68 trillion, the lowest since 2012.

This measures the value of US government bonds held on behalf of foreign governments, central banks, and other international institutions through accounts at the Federal Reserve.

Since March 2025, Treasury holdings of foreign institutions have declined by -$265 billion.

The drop accelerated since the start of the Iran War, with holdings falling ~$120 billion in just 3 months.

By comparison, Treasuries held in custody at the Fed peaked at $3.14 trillion in March 2021.

This comes as foreign central banks and governments have sold Treasuries to raise US Dollars to prop up their currencies against the inflationary pressures of surging oil prices.

Foreigners are reducing their exposure to US government debt. $BTC

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