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US Treasuries worth $34.5 billion has been sold in the week ended on January 13. Adding this spout of selling to the first week's $12 billion totals to $46.5 billion and total treasuries held in the US Treasury thus stands at $2.962 trillion.

The treasury reserve appears to be the lowest among the recent data recorded since early November. Intriguingly, not a single dollar has been added to the total reserve since April. However, the reserve has reported the highest additive figure of $570 billion during that month, reports Sanguine Laginchey, the curated iMagazine.

The inflows during the first two weeks of the year represent the worst out flowing custody holdings scenarios in the history. More than $20 billion has been withdrawn from the treasury custody holdings each of the first two weeks of the year.

However, size of the liquidation has promptly drawn the rate community's attention. Foreign central banks have increased their intervention activities investing either in the foreign exchange or in the stock market since the New Year initiated, reports Zero Hedge quoting Louis Crandall, chief economist of Warightson ICAP.

There apparently exists no mean to know the amount of treasuries sold by the central banks since the nature of transaction looks alike liquidation of coupon securities. Many observers hold China as the perpetrator behind the drop in Treasuries holding. But some others outright the allegation reminding presence of every foreign central bank in the stage, reports Ottawa Bullion quoting Aaron Kohli, an analyst at BMO Capital Markets.

Foreign holders of treasuries, mainly China, are selling the holdings of securities at a record pace to defend their currencies. Currency levels are reportedly under attack in China, Saudi Arabia and now Hong Kong and thus the specter of 1997-1998 is believed to haunt the market again.

China doesn't have a deep pool of reserves to defend their currency. It is widely believed that China has a very little reserve left to defend their currency. So, its efforts to keep hold the currency level in place may linger maximum for three months, analyzes Ice Farm Capital's Michael Green, considering its current burning rate.

If the analysis comes true, an unprecedented shock for record capital outflow by China may be observed during the coming months. But it is widely assumed that finally China has to let its currency to float free and thus pave the way to stage the biggest economic drama in the history.

The Chinese central bank as well as those from some other foreign countries has withdrawn a total of $46.5 billion from the US Treasuries Custody. China is believed to be the dominant player in the withdrawal syndrome since it apparently inflows the fund to keep its currency in place. However, within a few months, China will be forced to let its currency float free but by this time, US Treasuries holdings may witness the historic high outflows.