Ever since COVID, China has been selling Treasuries and other assets to cover its bad internal debts and subsidize employment.
If Japan dumps U.S. debt, Trump could face a treasury market meltdown that sends yields surging sky-high
Japan is the next nation to fall from a debt crisis,( already in motion) then the EU. China is selling off US debt because they do not want the US to confiscate / steal their funds like they did to Russia ( as are many others).
Note: ALL nation’s currencies are rapidly declining, massive losses of purchasing power. Hopefully Trump will undo what senile Joe did to us. His Gold backed ( redeemable) 50 year Bonds may entice countries to re invest in the U.S.
Judy Shelton has spoken about the new Gold backed Treasuries, unveiling slated for July 2026.
So, an effect on treasuries? Yes. A death knell to treasuries? Far from it.
I don’t know what they are going to use to control their currency. Without US$ their currency will increase in value and their export economy will be finished.