Central banks of many countries are reducing their holdings of US Treasury bonds, and the US dollar is facing downside risks.

Chris Turner of the Dutch international group pointed out in a report that the latest data shows that central banks in multiple countries are continuing to reduce their holdings of US Treasury bonds, which may mean that they are reducing their exposure to the US dollar in foreign exchange reserves. As of this Wednesday, the amount of US Treasury bonds held by the Federal Reserve for foreign official and international accounts was $2.83 trillion, down from $2.86 trillion the previous week. Since early April, the total amount held in custody has decreased by $100 billion. Although the US private sector may fill the gap left by foreign official selling, the impact on the US bond market is likely to be limited. However, analysts believe that this move could still have a "potentially negative" impact on the US dollar, suggesting that the dollar may face downward pressure in the future.