Japanese finance minister says selling U.S. bonds a “card on the table”

Everyone now knows that the bond market has a unique sway on President Trump's policymaking — and a subtle, but important, threat from the Japanese government could move his stance on trade with a crucial ally.

Japan is the largest foreign holder of U.S. Treasuries, and even the vaguest hint that it could dump those holdings is powerful leverage with the administration. Following through on the threat could cause interest rates to spike.

Japanese Finance Minister Katsunobu Kato said Friday that the country's $1.13 trillion in Treasury holdings were a "card on the table" in trade talks, The Associated Press reported.

"It does exist as a card, but I think whether we choose to use it or not would be a separate decision," Kato said on a Japanese TV broadcast, per the AP.