BOFA WARNS OF FALLING FOREIGN DEMAND FOR U.S. DEBT Bank of America warns that foreign interest in U.S. government debt may be weakening. Custodial holdings—a proxy for foreign demand—fell sharply last week, with dollar asset holdings down over 60 billion since April. While recent Treasury auctions eased immediate concerns, BofA says the longer-term trend is troubling as more global investors reduce exposure to U.S. assets.