US and Japan Use Repo Facility in Coordinated Yen Intervention

The US and Japan's coordinated intervention to support the yen involved a pragmatic move by the US Treasury, which lent dollars to Tokyo using Treasury bonds as collateral.

This approach aimed to prevent a disastrous sell-off of Treasurys in case Tokyo decided to dump its holdings, which could have had severe consequences for global markets.

US President Donald Trump described the intervention as a 'signal of friendship' between the two nations, but experts say the practical considerations behind it are more complex.