Rising dollar may be to blame, via Bloomberg
Custody holdings at the Fed just fell below $3trillion for the first time in two years.
The rising dollar may be to blame as it makes it more expensive for investors outside the US to buy.
One issue that has been highlighted from time to time is if China got rid of some or all of its US Treasuries. The latest US data detailing holdings by individual countries as of July showed China owned more that $1 trillion of US sovereign securities, though the figure was the smallest since March 2017.
That is not a huge drop in US treasury holdings and no cause for alarm as a strong dollar seems the most likely reason for the downturn in holdings. One to watch though.
