He added:
“And what is the largest and most liquid foreign asset held by Japanese institutions? The United States Treasury bond. Japan is the largest foreign holder of U.S. government debt, with over $1.1 trillion in its coffers.”
FAQ 🇯🇵 Why did the Japanese yen strengthen against the U.S. dollar?The yen firmed as markets reacted to intervention signals from U.S. and Japanese authorities and shifting expectations around interest rate policy. What role did the New York Federal Reserve play?The New York Fed conducted a yen “rate check,” widely viewed as a preliminary step toward possible foreign exchange intervention. How did the Bank of Japan influence markets?The BOJ held rates at 0.75% while signaling that accommodative conditions would continue for the time being. Why are Japanese government bonds part of the story?JGB prices rose as yields fell, reflecting bond market stress and expectations that domestic capital may be redirected back into Japan.
