Chinese holdings of US Treasuries have fallen to their lowest point since the 2008 Global Financial Crisis, marking a significant milestone in the ongoing shift in Beijing's reserve management strategy. The decline signals a sustained, deliberate reduction in China's exposure to US government debt — a trend that has accelerated amid deepening trade tensions and geopolitical friction between Washington and Beijing.
For markets, the timing is critical. A major sovereign seller stepping back from the world's deepest bond market adds upward pressure on US yields at a moment when the Federal Reserve is already navigating a delicate balance between inflation control and financial stability. Fewer natural buyers for Treasuries means the market must clear at higher rates, tightening financial conditions globally.
The move also carries a broader signal: Beijing appears to be diversifying…
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