Japan denies plans to leverage $1 trillion Treasuries in US trade discussions

Economy

Japan denies plans to leverage $1 trillion Treasuries in US trade discussions

7 months ago

News sources:

CHANNELNEWSASIA

TRTGLOBAL

SCMP

Japan denies plans to leverage $1 trillion Treasuries in US trade discussions

Credited from: CHANNELNEWSASIA

Japan's finance minister reassures there are no plans to sell US Treasuries.
Remarks earlier suggested Treasuries could be a bargaining chip.
Japan's Treasury holdings aim to support yen intervention, not negotiation leverage.

Japan's Finance Minister Katsunobu Kato stated that the country has no intentions of using its substantial holdings of over $1 trillion in U.S. Treasuries as a threat during trade negotiations with Washington. This clarification comes after his earlier comments indicated that these bond holdings could potentially serve as a bargaining tool. Kato emphasized that his remarks were meant to provide reassurance rather than suggest any intention to sell these holdings, according to Channel News Asia, TRT Global, and South China Morning Post.

Kato further explained that, while Japan's Treasury holdings could theoretically be positioned as a card in trade discussions, whether to actually utilize that position is a separate issue. He reiterated that the primary purpose of these holdings is to maintain sufficient liquidity for yen intervention when necessary, underscoring Japan's commitment to this approach, according to Channel News Asia and TRT Global.