📰 China Urges Banks to Reduce Exposure to US Treasuries

February 9, 2026

Chinese regulators have advised domestic financial institutions to limit their exposure to US Treasury bonds, citing concerns over concentration risks and ongoing market volatility, according to sources familiar with the matter.

Officials reportedly instructed banks to curb new purchases of US government bonds and encouraged institutions with significant holdings to gradually reduce their positions. The guidance was delivered privately and applies specifically to financial institutions, not to China’s official state holdings of US Treasuries.

The move reflects growing caution within Chinese regulatory circles regarding external financial risks and potential instability in global bond markets.

Market analysts suggest that such steps could influence demand for US government debt and may contribute to short-term fluctuations in Treasury yields.

Chinese authorities have not issued a public statement regarding the directive.$BTC

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