Dealers Cut Treasuries as Fed Plans to Raise Interest Rates

Wall Street dealers cut holdings of U.S. government debt at the end of last year to the lowest level in 21 months as the Federal Reserve plans to raise interest rates this year.

The 22 primary dealers that trade Treasuries with the central reduced their holdings to $7.8 billion as of Dec. 31, down from $35.6 billion the previous week, according to Fed data. The holdings are the lowest since the data were reorganized in April 2013. A majority of the reductions were in shorter-term coupon securities.