Why it matters: Japan is the largest foreign holder of U.S. Treasuries, and even the vaguest hint that it could dump those holdings is powerful leverage with the administration. Following through on the threat could cause interest rates to spike.
Catch up quick: Japanese Finance Minister Katsunobu Kato said Friday that the country’s $1.13 trillion in Treasury holdings were a “card on the table” in trade talks, The Associated Press reported.
https://www.axios.com/2025/05/02/japan-trump-bonds-tariffs-trade-deal