GoKawiilForeign Central Banks Pull Back on US Treasuries as Hedge Funds Fill Gap via Offshore Hubs
Treasury Department data shows foreign official holdings of US Treasuries fell to $3.77 trillion in July, roughly the same level as 2012, even though total Treasury debt outstanding has tripled since then. Their share of marketable Treasuries has dropped to 12.8%, the lowest since 1993, while overall foreign holdings—including private investors—still hit $9.25 trillion, buoyed by activity in offshore financial centers like the Cayman Islands.