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- ⚠️Foreign central banks are dumping US Treasuries at the fastest pace in years
⚠️Foreign central banks are dumping US Treasuries at the fastest pace in years
Foreign central banks are adding to the pressure in the Treasury market at the worst possible time
Global Markets Investor
April 01, 2026
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GLOBAL MARKETS INVESTOR’S PORTFOLIO IS 🔥UP +97%🔥SINCE JANUARY 2024
DURING THE MARCH-APRIL 2025 MARKET TURMOIL, MAJOR US INDEXES FELL NEARLY 20%, WHILE THE GMI PORTFOLIO GAINED OVER 5%, FIND OUT HOW BELOW:
Holdings of US Treasuries at the New York Fed have fallen to ~$2.7 trillion, the lowest since 2012.
The New York Fed holds Treasuries in custody on behalf of foreign central banks, governments, and international institutions.
Since February 25, foreign central banks have sold over -$90 billion in US Treasuries in just 5 weeks, with the bulk of the selling over the last 3 weeks.
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This comes as oil-importing nations such as Turkey, India, and Thailand are selling to defend their currencies and pay for surging oil imports priced in US Dollars, with Turkey alone offloading -$22 billion in foreign government securities since February 27.
Middle Eastern oil exporters, including Kuwait, Saudi Arabia, and the UAE, which held a combined $313 billion in Treasuries in January, may also be selling to offset lost oil revenue from the Strait of Hormuz closure.
Rising geopolitical risk, surging oil prices, and currency market turmoil are all working against demand for US government debt.
Meanwhile, gold now makes up 24% of global central bank reserves, surpassing US Treasuries at 21% for the first time since the mid 1990s.
This is a complete reversal from Q4 2015, when Treasuries made up 33% of reserves and gold just 9%.
Gold as a % of central bank reserves has nearly tripled over the last decade, driven by both aggressive central bank purchases and surging gold prices.
At the same time, central banks have steadily reduced their exposure to US government debt, driven by China.
As our regular readers know, the shift signals a historic move away from US Dollar-denominated assets as the global reserve system evolves.
Gold is no longer an alternative reserve asset. It is now a major reserve asset.
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