The Russian government, previously considered a significant holder of U.S. debt, has been steadily — and sharply — paring down the vast majority of its holdings of U.S. Treasury securities. Russian holdings of Treasury securities declined 84 percent between March and May, falling to $14.9 billion from $96.1 billion in just two months, according to a U.S. Treasury Department report released July 18. Financial bloggers have pounced on the news as being potentially ominous, but a few analysts suspect the transactions are more closely related to Russia's sanctions-hit economy, and portfolio allocation. Russia's ownership of U.S. debt is eclipsed by that of China and Japan, both of whom actively manage their currencies and hold more than $1 trillion each in Treasuries on their books. In fact, China's vast holdings have been cited by some observers as a "nuclear option" in a Chinese-American trade war, with the U.S. economy seen as vulnerable to Chinese selling that could drive up yields. Major foreign holders of U.S. debt accounted for $6.21 trillion of current U.S. debt, while the total public debt outstanding is $21.3 trillion as of July 26.

The country's moves in the Treasury market come amid a growing furor over Moscow's suspected meddling in the U.S. general election in 2016, which has led to sanctions on its economy. Russia's sell-off of U.S. debt in May also coincided with a jump in yields as the benchmark 10-year Treasury note yield briefly touched its highest level since 2011. A Treasury Department spokesman offered the following statement to CNBC: "The Treasury market is the deepest and most liquid in the world, and demand remains robust. We do not comment on individual investors or investments." Though the 10-year yield has since retreated from levels above 3 percent, its movements have implications for other financial instruments like mortgages rates and auto loans, which are often based on its rate. The yield on the 10-year Treasury note has subsequently stabilized, trading at 2.958 percent.

Selling for sanctions?