Global Shift From the Dollar Accelerates as Treasury Yields Rise

Overview

• U.S. Treasury yields have climbed to multi‑year highs, prompting the Treasury to buy back longer‑dated debt in a tactical move aimed at easing market strain.
• Several sovereign actors are cutting exposure to U.S. Treasuries and relocating gold from New York vaults, with Norway, the Netherlands and France cited for recent actions.
• Official holdings of gold overtook foreign holdings of U.S. Treasuries last year and gold has surged in price as central banks increase physical reserves.
• China’s mBridge project and a Russia‑India digital‑currency plan are advancing as practical alternatives for settling trade outside dollar‑based systems.
• Treasury Secretary Scott Bessent has publicly defended U.S. financial credibility, but officials warn that the mix of high debt, frequent use of sanctions and new payment technology could raise U.S. borrowing costs over time.