For clarity, China de-prioritizes T-bills in favor of US Federal agency bonds which are nearly the same risk but slightly higher returns/interest rates. They cu

For clarity, China de-prioritizes T-bills in favor of US Federal agency bonds which are nearly the same risk but slightly higher returns/interest rates. They currently hold $1.2 trillion in federal USD Fannie Mae/Freddie Mac/SBA/FHA bonds. Higher reward, similar risk, still perfectly reasonable USD FX reserves.