Japan Unloads Treasuries to Fuel Record Yen Intervention

Japan's record-breaking currency intervention has sparked an investigation into how the country funded its efforts. According to Bloomberg, Japan likely sold a portion of its holdings of foreign securities, including US Treasuries, to finance its record currency intervention over the past month.

The intervention, which took place in August, was aimed at supporting the yen, which had fallen to a 24-year low against the dollar. The Bank of Japan's governor, who is not quoted in the source, likely authorized the sale of Treasuries to fund the intervention.

The exact amount of US Treasuries sold by Japan remains unclear. However, analysts believe that the country may have sold as much as $100 billion worth of foreign securities, including Treasuries, to finance its currency intervention efforts.