Citibank Debunks Claims of China and Japan Driving U.S. Treasury Volatility

TL;DR;

Citibank refutes the claim that abnormal fluctuations in U.S. Treasury bonds are due to selling by countries like China and Japan, citing that national-level investors have not massively sold off their holdings. They attribute the volatility to poor expectations, decreased liquidity, and fund sell-offs, particularly by risk parity funds, which have sold 815 billion yuan of U.S. debt since March 25. Citibank also suggests that the market overestimates the potential impact of China selling U.S. debt, noting that China's holdings are less than the recent sell-off by risk parity funds.