China Tells Banks to Scale Back US Debt Holdings
Regulators in China have reportedly instructed domestic banks to reduce their holdings of US Treasury bonds, citing concerns over concentration risk and market volatility. This directive, aimed at enhancing financial stability, encourages banks to limit new purchases and scale back existing investments. The news has already contributed to a dip in the dollar and is expected to reignite discussions about the broader “sell America” trade, driven by US fiscal concerns and geopolitical factors.
John Q. Hosedrinker