Japan's $1 trillion in US Treasury securities could influence trade negotiations

From Investing.com: 2025-05-05 08:27:00

Japan holds over $1 trillion of US Treasury securities, sparking speculation that it might use this leverage in tariff negotiations. Japanese Foreign Minister Katsunobu Kato stated that they have not made a decision on using their holdings as leverage. Japan could opt to buy more Treasuries to show goodwill and stabilize markets, or agree to hold more long-term debt. This move could influence other countries to use their Treasury holdings in negotiations with the US. In other news, the economy added 177k jobs last month, with the unemployment rate remaining at 4.2%. The ISM survey will provide insight into economic expansion, focusing on prices and employment components. The Fed’s meeting this week will likely not result in a rate cut, but the market will closely watch for any discussion on future rate cuts. Earnings announcements may have less impact moving forward.



Read more at Investing.com: Might Japan Be the Treasury’s Knight in Shining Armor?