Central banks have dumped $48 billion in Treasuries as foreign wealth officials divorce the dollar

• More than 200 central banks and other foreign entities like sovereign wealth funds keep Treasuries and other assets in the custody of the New York Federal Reserve. Those holdings declined by $17 billion last week and have fallen by $48 billion since late March, just before Trump’s tariffs sparked a confounding bond sell-off.

Markets are watching closely for any signs foreign investors are souring on U.S. debt. A pullback in bond buying from central banks could send borrowing...