Japan's Government Pension Investment Fund made a record cut to the weighting of Treasurys.
Investors are piling back in, leading to a squeeze of short positions.
Investors are betting the Fed will cut interest rates to cope with the economic impact of the coronavirus.
The Dollar Index rallied to the highest in more than two years in August as investors sought shelter.
Stronger-than-forecast gains in U.S. consumer price indexes in June are being cited as an obvious answer.