Foreign central banks have slashed their holdings of Treasuries at the New York Federal Reserve by $82B since Feb. 25, bringing total holdings to $2.7T—the lowest level since 2012 “The foreign official sector is selling Treasuries,” said Meghan Swiber, a U.S. rates strategist at Bank of America, noting that the decline is particularly significant given that the Treasury market has roughly tripled in size since the Fed last recorded this level of selling. The selloff comes as the Iran war and the closure of the Strait of Hormuz have triggered a surge in energy prices and strengthened the dollar, upending the finances of countries that rely on oil imports. Central banks have intervened in foreign exchange markets to prop up their currencies, a move that typically involves selling U.S. dollars (DXY) and the Treasury securities they hold.(FXHedge)