Rebel Capitalist News Oh No, China Just Made HUGE ANNOUNCEMENT About US Treasuries
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Feb 10, 2026 China asked its banks to curb Treasury purchases, stirring talk about who holds US debt and why. The conversation covers custody shifts to Belgium and Cayman and why that matters. They debate if foreign moves could spike yields or if domestic growth and bank incentives drive rates. Charts and auction data get examined to challenge alarmist narratives.
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China's Announcement Didn't Send Yields Skyrocketing
- China told its banks to limit exposure to U.S. Treasuries, but yields did not spike as alarmists predicted.
- George Gammon argues yields fell recently, contradicting the narrative that foreign selling must push long-term rates skyward.
Actual 10-Year Yield Movement Contradicts Panic
- Despite headlines, the 10-year yield moved from about 4.6% to 4.2% over the year.
- Gammon highlights that yields actually fell, showing the dumping narrative is oversold.
China's Motive May Be Domestic Rate Relief
- Gammon suggests China wants banks to buy Chinese sovereign debt instead of U.S. Treasuries.
- He argues Beijing needs to lower domestic rates to support a struggling Chinese economy.