CoinVoice has recently learned that, according to Reuters, Japan's Finance Minister Katsunobu Kato denied in Milan the claim that Japan plans to use the sale of over $1 trillion in U.S. Treasury bonds as a threat in trade negotiations. Two days prior, Kato hinted in a television interview that Japan might use its U.S. bond holdings as a bargaining chip, which briefly shook the global bond market.

Kato explained that his previous remarks were in response to questions about whether Japan could assure Washington that it would not easily sell off U.S. Treasury bonds, emphasizing that the main purpose of holding U.S. Treasury bonds is to provide the government with sufficient foreign exchange to stabilize the yen when necessary. Meanwhile, the Bank of Japan maintains the short-term interest rate at 0.5%, and Governor Ueda Kazuo stated that the timeline for achieving the 2% inflation target has been delayed due to the impact of the new U.S. tariffs.