economy

February 11, 2026

China calls on banks to limit exposure to US debt

China has urged banks to limit holdings of US Treasuries amid market volatility and rising risk concerns, according to Bloomberg

China calls on banks to limit exposure to US debt

TL;DR

  • China has urged its major financial institutions to curb exposure to U.S. government debt.
  • The guidance advises limiting new purchases and reducing high-exposure positions.
  • This move reflects concerns over market volatility and growing financial/geopolitical risks.
  • China's U.S. Treasury holdings have fallen significantly over the past decade.
  • Broader concerns exist about swings in U.S. bond yields and reliance on dollar-denominated assets.
  • Germany's financial watchdog has warned about potential challenges to the dollar's reserve currency status.

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