lowering demand for us paper means higher interest rates. higher interest rates in the us means devaluation of foreign (non us currency), all other things equal.

us is going to slow gdp when interest rates go up (look at fed...they are scared). so this is basically a stealth currency deval and a shot accross the bow to obama (sitting admin will take the hit if gdp in us goes south).

typically, this is crytpic and below the radar type of stuff but almost certainly is meant to broadcast a message.

just my $0.02.