Story perspectives

China Limits U.S. Bond Purchases Amid Market Demand Surge

2/11/2026

Summary

Story summary

U.S. Treasury Secretary Scott Bessent said the Treasuries market performed well in 2025, with demand at $9.4 trillion.
China has advised banks to limit new U.S. bond purchases, signaling a long-term reserve-diversification strategy rather than a sell-off.
China's holdings declined from $1.3 trillion a decade ago to below $700 billion, making Japan the largest foreign holder.
Overall, foreign holdings remain high, supported by Norway and Canada, despite China's gradual reduction.

1 of 1

Story summary

U.S. Treasury Secretary Scott Bessent said the Treasuries market performed well in 2025, with demand at $9.4 trillion.
China has advised banks to limit new U.S. bond purchases, signaling a long-term reserve-diversification strategy rather than a sell-off.
China's holdings declined from $1.3 trillion a decade ago to below $700 billion, making Japan the largest foreign holder.
Overall, foreign holdings remain high, supported by Norway and Canada, despite China's gradual reduction.