Foreign U.S. Treasuries Held at the Federal Reserve Fall to $2.68 Trillion
The reported custody total for foreign governments and central banks has dropped to its lowest level since 2012, indicating a notable decline in U.S. government bond holdings at the Federal Reserve.
Fact Check
Multiple independent sources confirm the $2.68 trillion figure and 'lowest since 2012' framing. The Kobeissi Letter post is the proximate origin of the recent figure (May 27-28, 2026), and SpendNode explicitly references Fed H.4.1 data as the underlying source. The downward trend was independently documented earlier by FT (March 2026) and Reuters (October 2025), both noting custody holdings at multi-year lows. The figure is consistent with the Fed's published custody trajectory.
Summary
Foreign U.S. Treasuries held in custody at the Federal Reserve have declined to $2.68 trillion, the lowest level since 2012, according to the provided report. The measure tracks U.S. government bonds held through Federal Reserve accounts on behalf of foreign governments, central banks, and other international institutions. Treasury custody data is closely watched because it can reflect shifts in reserve management, global demand for U.S. government debt, and broader international capital allocation patterns.
Terms & Concepts
- U.S. Treasuries: Debt securities issued by the U.S. government and widely used as reserve assets and benchmark safe-haven instruments in global markets.
- Federal Reserve (U.S. central bank) custody holdings: Assets the Federal Reserve holds on behalf of foreign official institutions, rather than securities owned directly by the Federal Reserve itself.
- Central banks: National monetary authorities that manage currency reserves, oversee monetary policy, and often hold government bonds as part of official reserves.