Yields on 10-year Treasuries rose as much as four basis points on the day to 4.25% after trading around 4.22% earlier. The Bloomberg Dollar Spot Index dropped 0.1%.

Chinese officials had urged banks to limit purchases of US government bonds, and instructed those with high exposure to pare their positions, according to people familiar with the matter. The move was framed around diversifying risk rather than anything to do with geopolitical maneuvering or a fundamental loss of confidence in US creditworthiness.

The directive doesn’t apply to China’s state holdings of US Treasuries.

This news is “the latest piece in the ‘bye America’ jigsaw puzzle,” said Michael Brown, senior research strategist at Pepperstone Group. It’s in line “with the broader theme that we’ve seen in recent weeks amid not only attacks on the independence of the Fed but also as the Trump administration’s geopolitical polices become increasingly volatile too,” he added.

Officials didn’t given any specific target on size or timing. While significant tensions remain between Beijing and Washington, relations have steadied in the wake of a trade truce last year.