One other observer said that the decline "should be foreign central
bank selling" as opposed to routine rolling of maturing securities.
"Those are very chunky numbers. We did not even get such large sales
back in August 2015 when we knew there was such selling" in Treasuries
to get money to fund buying of China stocks, he said.
Now this has been repeatedly noted in the press as irrational – why
would US government bonds be trading at a risk premium to swap spreads
which carry bank counterparty risk? I would suggest there is one very