US Treasury Secretary Scott Bessent on Tuesday rejected the idea that European governments could aggressively sell American debt to counter Washington's threats over Greenland, saying such a move would "defy logic".But asked by reporters at the Davos World Economic Forum whether the US was preparing for such a scenario, Bessent said that it "defies any logic".
Don’t underestimate what a couple percent can do to the economy. On surface level, it might seem to be a small amount in comparison to the total, but if it makes it just a bit harder for the US to borrow money, it can trigger a domino effect. The countries and investors that are still interested in buying their debt could easily realize that if they hold back as well, they can demand higher interest rates. Economies have crashed over less.
Europe would probably do it over a long term by simply not rolling treasuries or slow sell off.
I think this is a long game to play