China nudges banks to diversify away from U.S. Treasuries

China reportedly told its banks to limit holdings of U.S. Treasury bonds to diversify risk, signaling a shift in foreign demand from Treasuries. The move is viewed as part of a multi-year drift rather than an immediate crisis, and experts say the dollar's safe-haven status remains largely intact. Factors include political risk under Trump, rising deficits, the dollar as a tool of statecraft, and Japan's rising yields, though a full move away from the dollar is unlikely in the near term.