When I have excess money I wouldn’t think of taking a loan which is much smaller than my savings. Why does a sovereign state issue sovereign bonds to borrow tens of billions dollars when it has in reserve over half a trillion dolars?
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You can’t compare monetarily sovereign states to households, their finances are in no way the same.
So a country issues bonds to remove currency from circulation, the other method of doing that is levying taxes.
Currency reserves are an asset that can allow the state to buy things that are not for sale in their own currency.
For example, if I want to buy a ship made by a Chinese company they may insist on being paid in Yen and not £s, in which case I need to have Yen in order to buy that item.
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