China is reportedly urging banks to curb US Treasuries exposure amid market risk, Bloomberg reports citing sources; guidance does not apply to China's state holdings of US Treasuries

China is reportedly urging banks to curb US Treasuries exposure amid market risk, Bloomberg reports citing sources; guidance does not apply to China's state holdings of US Treasuries.

China's directive for banks to limit their exposure to US Treasuries signals growing concerns over market risks, potentially impacting USD stability and global rates. This move, while excluding state holdings, may reflect broader geopolitical strategies and could influence investor sentiment across fixed income and FX markets, particularly as they assess the implications for future US monetary policy and risk appetite.