As of Aug. 19, foreign official institutions held about $373bn in the Fed’s
foreign RRP facility, up roughly $56bn since Aug. 5 — the largest two‑week
increase since Oct. 2022. Coupled with recent global long‑bond selling, the
flows point to rising demand from overseas official funds for short‑duration,
highly liquid dollar assets. In June, foreign central banks net‑sold nearly
$10bn of U.S. Treasuries, and overseas official USTs in NY Fed custody fell to
multi‑year lows, signaling strong dollar cash demand but increased caution on
taking long‑duration UST risk.
