Holder was sent back to the Yankees and assigned to the team's alternate training site Tuesday.
Holder was selected by the Phillies in the Rule 5 draft in December and flipped to the Reds in January. He failed to earn a roster spot in Cincinnati and will now be back with the club that drafted him. Holder will serve as organizational depth, but he won't likely be one of the team's top call-ups in the event of an injury, as he isn't on the 40-man roster.