Won’t flooding the market with large supply of bonds being sold at one time cause the price of the bonds to drop, resulting in losses for the sellers of the bonds?
Meanwhile, the bond holders that don’t sell, can wait it out until the bond pays out or the selling mania stops, and the price returns to equilibrium.
That won't work... that will crash the price of [new] bonds, and more capitalized nations will buy the dip. You are operating under an assumption that the humans controlling a quantity of wealth enough to [quote] "crash the bonds market" make decisions based on principles. They don't - and if you compare history with a long term bond price chart then it will become apparent.
Now, pray tell, which other nations are more capitalized than the world's third largest economy? Who would buy the dip? China? I doubt it. And nobody else has the scale.
Meanwhile, the bond holders that don’t sell, can wait it out until the bond pays out or the selling mania stops, and the price returns to equilibrium.