According to @KobeissiLetter, foreign official US Treasuries held in Federal Reserve custody fell to $2.78 trillion in October, the lowest level since 2012 (source: @KobeissiLetter). Foreign official holdings in Fed custody have decreased by $166 billion since March and are down $356 billion from the 2021 peak, indicating weakening foreign demand for US debt and increased diversification away from US Dollar assets (source: @KobeissiLetter). Gold has been a key beneficiary of this rotation, consistent with reserve managers diversifying away from US debt (source: @KobeissiLetter). Traders should monitor US Treasury yield moves and gold flows for positioning as this decline in official custody holdings underscores softer marginal demand for Treasuries and shifting reserve preferences (source: @KobeissiLetter).