Japan's Bond Market and Weak Yen Send Shockwaves Through Global Markets

The US is concerned about Japan's weak yen and its bond market because Japan lends Washington more money than any other foreign country.

President Donald Trump raised the issue directly with Prime Minister Sanae Takaichi last week, according to Finance Minister Satsuki Katayama.

Japan owns more US Treasury bonds, the IOUs Washington sells to fund its spending, than any other foreign country. It held over $1.1 trillion as of May, making it the biggest foreign holder of US debt.

To prop up the yen, Japan has been selling dollars and buying yen, which means fewer buyers are willing to buy US Treasury bonds at low yields.