Treasuries at Risk of Foreign Buyer Strike in Tariff Retaliation
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As investors game out President Donald Trump’s sweeping tariffs and the risks of retaliation, one question traders are debating is whether foreigners might scale back Treasury purchases.
The next round of holdings data from China and Japan will be particularly scrutinized as the two countries are the largest overseas owners of US sovereign debt, and also because Trump’s massive trade duties are heavily focused on Asia. China has already trimmed its Treasury stockpile for three straight years, while Japan’s has also dropped, based on the latest US government data.