Trump’s Treasury threat will only accelerate the dollar’s decline

US President Donald Trump’s thinly veiled threat to hold a gun to the heads of countries that refuse to maintain or expand their holdings of US Treasury bonds would be absurd coming from anyone other than the highly erratic US president. Nevertheless, it must be taken seriously by markets. Questioned about Treasury Secretary Scott Bessent’s recent efforts to support the US government bond markets through official buy-backs, Trump said that this tactic represents just one possible type of market.