💎 China orders banks to reduce US Treasury holdings. This is a smart and prudent move by Chinese regulators 📝 With US Treasury yields becoming more volatile due to persistent inflation concerns, massive fiscal deficits, and unpredictable Fed policy, it makes perfect sense for commercial banks to reduce concentration risk. This isn't about dumping Treasuries overnight or weaponizing holdings — it's simply prudent risk management at the institutional level. Importantly, this directive doesn't touch China's official state reserves, so the overall de-dollarization narrative might be overstated here. Diversifying away from over-reliance on any single asset class in such an uncertain global environment is just basic good banking practice