Source: Bloomberg
“Treasuries extended losses after Chinese regulators reportedly asked the nation’s financial institutions to rein in their holdings of US bonds. Yields on 10-year Treasuries rose as much as four basis points on the day to 4.25% after trading around 4.22% earlier. The Bloomberg Dollar Spot Index dropped 0.1%. Chinese officials had urged banks to limit purchases of US government bonds, and instructed those with high exposure to pare their positions, according to people familiar with the matter. The move was framed around diversifying risk rather than anything to do with geopolitical maneuvering or a fundamental loss of confidence in US creditworthiness. The directive doesn’t apply to China’s state holdings of US Treasuries.” (02/09/26)