This is probably the number one issue undermining the USD in the FX market. Countries like China and Japan are increasingly buying short term treasury maturities and the long term yields are blowing out. I don’t think there is any major reason for panic just yet. It is a sensible investment decision to stay in the liquid short end. The downside of course is the signal it is giving to the broader market that confidence is lacking. As we all know, the market relies almost totally on trust and confidence and we are now in a phase where we need clear and obvious signs of market unity, not fear that the USD will be worth a lot less in 30 years.