Profligate government spending has institutionalized multitrillion-dollar annual deficits, which have driven up interest rates and left Treasury markets teetering on the edge. Now Japan is on the verge of a $400 billion fire sale of U.S. debt. This could break the back of the Treasury market and dev...
$400Bn is nothing in the USA, honestly. Japan could fire sale it all, which it won't, and in the worst case American actors will buy it all up and the market blip will be over in a single day. Someone will make good money on short sales, though.
Good. Donald Biden (or Joe Trump) have turned the USD and US debt into a dumpster fire. The sooner other countries dump it the better their finances will be.
Japanese investors hold a large chunk of US bonds. With the yen rallying against the dollar and US rates being high, they're looking to dump their bonds because otherwise they're going to start losing money on them.