China Tells Banks to Reduce U.S. Treasuries Holdings

For years, U.S. government bonds have been a key part of global reserves and bank portfolios, valued for safety and stability. Now, Chinese regulators are urging a shift. Officials have advised financial institutions to reduce their exposure to the U.S. Treasuries, citing worries over heavy concentration and growing market swings. Banks were told to limit new purchases and cut back where holdings are already high. The move was described as a risk-spreading step, not a sign of doubt in U.S. credit strength or a political signal. Bloomberg said the guidance came before President Xi Jinping’s recent phone call with U.S. President Donald Trump. Market unease has grown as investors react to Trump’s erratic trade stance, criticism of the Federal Reserve, and sharp rises in public spending.