The central banks worldwide are selling U.S. government bonds.

Anbound's research team is of the view that one of the main reasons why China is decreasing its holding of the U.S. government bonds is because following the weak economy in China, the pressure on the devaluation of RMB has increased tremendously, rendering China with no choice but to sell the USD to prop up RMB.

As the outlook of the economic growth around the world remains gloomy, the economy in the emerging market, in particular, will face bigger challenge in terms of economic growth, the central banks in such countries and/or regions will continue to sell U.S. government bonds. This will outline a clearer pattern of economic divergence in the future.