Why the US-Japan Joint Intervention to Prop Up the Yen? Fear of Treasury Yields Blowing Out if Japan Becomes a Forced Seller
The prior interventions failed to permanently turn around the downward spiral of the yen. What’s needed: much tighter monetary policies by the BOJ.
Source: Wolf Street
―
DW NOTE
The Fed can't have 4.68% tens and Japan holding 13% of outstanding Treasuries with a currency collapsing through 160. That's the intervention. If the BOJ tightens enough to defend the yen, they dump USTs into a market already choking on supply. If they don't, the carry unwind accelerates and Treasury dealers get run over.