The $10 trillion question: Can Europe weaponize its U.S. holdings?

With geopolitical tensions mounting and trade rhetoric intensifying, Europe holds a massive card—$10 trillion in American bonds and equities. But playing it? That's the hard part.

Here's the dilemma: If European policymakers offload these assets to apply pressure, U.S. Treasury yields spike. Borrowing costs climb. But the collateral damage cuts both ways—European portfolios take hits, and the broader financial system feels the tremor.

It's a classic standoff in macro strategy. Big positions look powerful until you realize moving them moves markets—including your own.