Asks why Treasury market shrugged off reports of Chinese banks being told to limit US Treasury exposure, referencing Ray Dalio's capital war comments.
Morgan
Deirdre McNeal
Near-term guidance was moderate (not from PBOC, to banks), explaining market's shrug. This is part of Beijing's gradual financial de-risking to limit exposure to dollar volatility.
Asks about China's leverage with rare earths and critical minerals, and how to interpret these reports ahead of a presidential meeting.
Morgan
Deirdre McNeal
This is leverage signaling. China is showing it has financial leverage points (beyond minerals) and that financial dependence cuts both ways.