Japan’s Treasury Bond Strategy: No Tariff Leverage Needed
Japan firmly denies employing its U.S. Treasury holdings as leverage in upcoming trade negotiations with the U.S., emphasizing the importance of the bilateral alliance. Recent market volatility, including a surge in longer-term Treasury yields, fueled speculation about global reserve managers potentially altering their U.S. debt positions. This speculation arose amidst concerns over the potential impact of past U.S. trade policies. However, Japan explicitly stated that disrupting the market is counterproductive to its goals.
John Q. Hosedrinker