China tells banks: Stop buying new US Treasuries & cut large holdings.

Reason? Sharp volatility in US debt could hurt banks.

Long-term diversification continues, holdings already down sharply. Risk management, not war.

China orders banks to limit new US Treasury purchases & gradually reduce large holdings. Regulators cite concentration risks & sharp market swings in US debt volatility.

This targets commercial banks only, not official PBOC reserves. A defensive move amid rising US fiscal pressures.

Why now? US Treasuries face higher volatility from record debt ($38T+), policy uncertainty & interest burdens. China's overall holdings already down 50% from 2013 peak ($682B now), shifting to gold & diversification.

Markets react: Yields up slightly, yuan stronger. Risk management, not dumping.