BondsMedium•15 October 2026•
1 min read
China Routing US Treasury Holdings via Canadian Custodians, Bloomberg Reports
Key Facts
1A Bloomberg report states China is moving US securities to non-US custodian banks in other countries.
2These moves aim to mask China's role in financing US deficits by using intermediaries in Canada.
A Bloomberg report states China is moving US securities to non-US custodian banks in other countries. Bloomberg reported that these moves likely aim to mask China's role in financing US deficits by shifting the custody of its Treasury holdings away from direct US-based accounts.
China is using intermediaries in Canada to facilitate these transfers according to FXStreet. While the shift in custody complicates the tracking of US debt ownership, it is viewed as a strategy to mitigate geopolitical risks associated with direct holdings rather than an immediate signal of a mass sell-off.