There are trade war theories that China is weaponizing their US Treasury holdings although some analysts disagree as the sell down may necessitate capital being moved back into China causing yuan appreciation. Others say that China can also convert the proceeds into Euros or German bunds. May explain Germany’s bunds bucking a wider sell-off in long-dated Treasuries last week. Other theories point to Japan’s life insurers selling due to concerns about US policy flip-flops, while others say it is the Hedge Funds and Bond Vigilantes.

Source: CNBC