The dollar weakens and Treasury yields rise after China signals banks to cut exposure to U.S. government bonds.
The U.S. dollar weakened while Treasury yields rose across the curve after China urged domestic banks to reduce their exposure to U.S. government bonds. Officials cited concerns over volatility and concentration risks, raising fresh questions about foreign demand for Treasuries.
Market participants said the move could accelerate diversification away from U.S. assets, particularly if geopolitical and fiscal concerns persist.