Foreign central banks' simultaneous net reduction of US bonds reflects the trend of diversification of foreign exchange reserves.

Overseas central banks are adjusting their logic of allocating US Treasury bonds. The latest weekly and monthly data from the US Treasury Department shows that whether it was the week of February 20th or December 2025, foreign central banks have shifted towards net selling of US bonds. Analysts generally believe that the current net selling is a reflection of official institutions seeking a balance between maintaining reserve asset liquidity and diversifying risks, rather than a disruptive change. However, against the backdrop of the undiminished status of US bonds as a "ballast," overseas official institutions are making marginal adjustments to their foreign exchange reserve structures due to factors such as the size of US debt and geopolitical risks. In the future, the long-term demand for US bonds in the market will face certain challenges of structural contraction.