Forex
US Treasury Buys Yen to Support Bonds Amid Dollar Volatility
US Treasury Secretary Scott Bessent confirmed that the US government bought Japanese yen in support of US bonds. This is the third coordinated intervention since 1998, with the last one occurring after Japan's earthquake and tsunami in 2011.
The move aims to counter disorderly yen movements and prevent further depreciation of the yen versus the dollar. The yen was trading at 40-year lows against the US dollar before the intervention.
Bessent hinted that rising yields in the US Treasury bond market may be driving his actions, as Japan holds $1.15 trillion in Treasuries, making it the largest foreign holder on earth.