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US Treasury undertakes historic intervention in yen market

https://www.ft.com/content/0f9b2fe7-bde4-4f5f-b49e-93ccb5da9ea8
14•23pointsNorth•1h ago

Comments

rib3ye•54m ago
https://archive.is/lAaaZ
horsey_face•43m ago
Doesn't mention that the Japanese would have sold US govt bonds to prop up the yen. But selling euros might force the Europeans to do just that to pro up the euro if need be. Is that a reasonable reading of things?
jurgenburgen•41m ago
I don’t think the ECB would intervene, a lower euro is not a panacea but helps local industry compete with Chinese industry.
eigenspace•12m ago
Euro countries hold even more US bonds than Japan does, and could sell those if they need to.

But the EU probably wont do that for monetary reasons. First, the EU doesnt really mind too much if the Euro drops in value a bit since it somewhat helps domestic industry. Second, the Euro seems to have strengthed against the dollar, not weakened since this was done.

I think if there was a coordinated selling off of US treasuries by Euro countries, it'd be to force a political concession from the USA, not to defend the Euro's value.

eigenspace•27m ago
Japan holds a huge amount of US treasuries, and I guess was considering a mass sell off to raise cash to defend the Yen.

US treasury bond yields are already dangerously high for the US and Japan selling treasuries would push yields up even higher.

I guess this is Bessent's scheme to try and kick that can down the road.

dzonga•22m ago
Japan is the sort of canary in the coal mine.

so yeah if the yen pops - then the u.s will too given all the 'a.i' shenanigans & the market manipulation with oil.

but I guess the US Treasurer is willing to manipulate the market till they can't.

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