A look at the data on China’s treasury holdings suggests why traders were so quick to move on from the report that Beijing had urged Chinese banks to limit their treasury purchases. "China’s holdings of US treasuries have been declining for more than a decade without causing a bear market in bonds or the dollar," says Skylar Montgomery Koning, Markets Live strategist at Bloomberg Strategists. Brazil’s long-term treasuries holdings have also declined. “It is a red herring,” said O’Neill about foreign investors dumping US debt en masse. If China or Japan reduces their holdings, someone else will buy them.”What’s more, the actual decline in China’s holdings may be smaller than official figures suggest.

Source: The Edge Markets February 11, 2026 11:35 UTC