China and Russia Seen Selling as Central Banks Trim Treasuries

Central banks are selling Treasuries at a time when almost everyone else is piling into them.

Monetary authorities outside the U.S. cut their Treasuries held in custody at the Federal Reserve to the lowest level in almost a year. Why? One theory starts with the record-setting rally in the dollar. To protect their own foreign-exchange rates, central banks are selling some of their holdings, exchanging the dollars and bringing the proceeds home.