https://www.reuters.com/world/asia-pacific/china-urges-banks-curb-us-treasuries-exposure-bloomberg-news-reports-2026-02-09/
quotingChina, as of Jan 2025, holds between 800 billion and 1.2 trillion in US bonds.
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Can they afford to trigger a bond panic that leads to large losses on that position?
But what if they are hedged?
China has $ 300 bn in gold (low estimate).
A 20% loss on their US bond position would be offset by a 65% gain in gold.
Gold has already risen more than that in the past 2 years.