As we suspected in our last post on this subject, 

We also have no doubt Japan’s holdings are down from the latest observation in July. – GMM,  Sep 29th

Japan, the country (data is aggregated), sold $34.5 billion of its holdings of U.S. Treasury securities in August.   China holdings of Treasuries are down 26.2 percent from the November 2013 peak of $1.32 trillion to $972 billion in August. 

Central banks have zero price sensitivity to the U.S. bond market, providing, essentially a “free-ride” in financing the U.S. government.  This story is in its last chapter and has major repercussions for all markets.