The Litecoin price prediction 2030US Treasury market is witnessing unusual activity as global reserve managers appear to be rewriting their traditional playbook. Contrary to historical patterns where central banks typically accumulate dollar-denominated assets during periods of currency weakness, recent data shows accelerating divestment from American government debt.
Bank of America's research team has identified concerning trends in custody account movements. Their June 2025 report highlights two parallel developments: approximately $48 billion in Treasury liquidations by official institutions since late March, coupled with a $15 billion reduction in foreign participation at the Federal Reserve's reverse repo window. These coordinated withdrawals suggest a potential recalibration of global reserve strategies.
Market analysts find this behavior particularly noteworthy given current forex conditions. The DXY dollar index, which tracks the greenback against six major counterparts, has depreciated nearly 8% year-to-date, hovering near multi-year lows. Conventional wisdom would predict foreign buyers capitalizing on cheaper dollar-denominated assets, yet the opposite appears to be occurring.
New York Federal Reserve custody statistics through June 11 reveal persistent selling pressure. Weekly averages show official sector Treasury holdings declining by $17 billion, maintaining the downward trajectory that began in spring. This sustained divestment contrasts sharply with earlier 2025 quarters when private sector demand partially offset central bank withdrawals.
Meghan Swiber, Bank of America's rates strategist, characterizes current conditions as structurally concerning. In her analysis, intermediary purchases by primary dealers and brokers merely mask underlying demand weakness rather than representing genuine investment interest. This creates potential fragility in the Treasury market's foundation should foreign participation continue deteriorating.
The political dimension adds further complexity. Recent trade policy announcements have amplified existing market anxieties, potentially accelerating what some traders term 'de-dollarization' strategies among international investors. While multiple factors contribute to the dollar's weakness, policy uncertainty appears to be compounding traditional economic fundamentals.
Forward-looking assessments suggest these trends may intensify. Bank of America's warning about weakening foreign demand trajectories comes as global portfolios increasingly consider alternative reserve assets and hedging mechanisms. This evolving dynamic could reshape traditional relationships between currency valuations and Treasury demand in coming quarters.