Japan’s Akazawa: US Treasuries Discussions Are Under Finance Minister Kato’s Jurisdiction

Japan’s Akazawa: US Treasuries Talks Would Be Handled by Finance Minister Kato

In an exclusive interview with Reuters on Thursday, Ryosei Akazawa, Japan’s Economy Minister and chief trade negotiator, clarified the chain of command concerning any potential negotiations involving US Treasuries.

“Any discussion on US Treasuries would be led by Finance Minister Katsunobu Kato,” Akazawa stated.

The comment comes amid speculation about Japan’s role in global bond market dynamics, particularly in relation to its significant holdings of US Treasury securities.

No Active Negotiations on US Treasuries

Akazawa added, “I’m not aware of any negotiation on US Treasuries,” emphasizing that economic diplomacy around sovereign debt is outside his direct portfolio. This suggests no ongoing bilateral talks on the matter between Japan and the United States.

Policy Separation: Trade vs. Finance

Akazawa’s remarks underscore the institutional boundaries within Japan’s government, where the Finance Ministry handles fiscal and bond-related issues, while trade discussions fall under Akazawa’s jurisdiction as Economy Minister.

This distinction becomes particularly relevant amid broader market scrutiny on global central banks' bond holdings and Japan's influence in US debt markets.

Implications for Markets and Policy Watchers

While the statement may ease speculation over Japan’s Treasury strategy, it reaffirms Katsunobu Kato’s role as the primary voice on issues related to US government debt holdings—a topic closely watched by Forex traders, bond investors, and diplomatic analysts.

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