📍Foreign investors continue to sell off US bonds

📌The amount of US Treasury bonds held by foreign entities under Fed Custody has fallen to $2.68T, the lowest level since 2012. This refers to the US Treasuries that the Fed holds in custody on behalf of foreign governments, central banks, and international institutions.
📌This trend began in March 2021, when foreign-held Treasuries at the Fed reached about $3.14T.
📌From March 2025 to date alone, holdings have declined by roughly $265B. The trend remains in place and is even stronger. The sell-off intensifies as the Iran conflict escalates.
📌As foreign entities reduce their exposure to US government debt, it will become increasingly difficult for the US to export inflation to the rest of the world.