Tokyo May Intervene to Boost Yen Amid Record-Borrowing Costs

Japanese borrowing costs have hit a 30-year high after US Treasury Secretary Scott Bessent signaled that Tokyo may intervene to boost the yen. The Japanese 10-year yield rose 6 basis points on Tuesday to nudge above 3% for the first time since 1996.

The move comes as global government borrowing costs hit multi-decade highs in economies across the world, with the resumption of military hostilities between the US and Iran over the weekend reigniting inflationary fears. The yen was last trading at 160.1 per dollar, breaching the 160 level some traders see as increasing the likelihood of currency intervention for the third straight session.

U.S. Treasury Secretary Scott Bessent told CNBC in a Monday interview: 'I have information that the market doesn't have. And it's my belief that the Japanese government and that the BOJ will do the things that will lead to a stronger yen.'