Bessent Meets Ueda Amid Japan's Yield Spike

US Treasury Secretary Scott Bessent met with Bank of Japan Governor Kazuo Ueda at the G20 finance ministers' summit, calling him his 'longtime friend'. The meeting comes as Japan's 10-year bond yield reaches a three-decade high of 3.003%, following a joint intervention in currency markets by the US and Japan on July 31.

Bessent expressed support for Japan's efforts to address the yen's undervaluation, stressing the importance of sound monetary policy formulation and communication to anchor inflation expectations and avoid excess exchange rate volatility.

Peter Schiff warned that this is just the beginning, predicting a larger problem still to come. The US and Japan have been working together to stabilize the yen, which has recovered slightly since hitting its weakest level in nearly four decades on July 31.