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".
And to add to this, while the secondary market doesn’t affect existing debt it can completely wreck a government’s ability to contract new debt, as anyone affected by the Euro Area Crisis in 2009 can tell.
So European investors can leverage existing bonds to make things much worse than simply not loaning more money.