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Foreign central banks shift US Treasury custody to Euroclear and Clearstream, favoring gold amid geopolitical risks.

Market News
15 Apr 2026
Seeking Alpha
View Source
Neutral
pluang ai news

Foreign central banks are reallocating their US Treasury holdings by moving custody from the New York Fed to Euroclear and Clearstream to diversify and reduce risk. Although total foreign official holdings of US Treasuries remain near record highs, their accumulation pace has slowed since 2022, with a growing preference for gold. Central banks have increased gold reserves significantly, raising its share of global reserves from 9% in 2015 to 24%, driven by geopolitical tensions and concerns about stagflation. This shift may pressure the Federal Reserve towards yield curve control as foreign demand for US debt softens amid persistent US fiscal deficits.

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