Japan Likely Sold Treasuries to Fund Record Yen Intervention

Live updates

1. 7d ago

   Japan Foreign Reserves Drop Record $80 Billion Following Yen Intervention

   Japan's foreign exchange reserves fell by a record $80 billion in August to $1.208 trillion. This drop followed a record currency intervention where Tokyo spent approximately $100.4 billion on yen-buying between July and August. Data indicates a 6.18% decline in reserves during August. Multiple reports suggest Japan likely sold US Treasuries to fund these operations to put a floor under the yen's value. Tokyo is now shifting its strategy from direct intervention toward interest rate hikes.

   Why it matters

   The Japanese government intervenes in currency markets to prevent the yen from weakening too far against the dollar. Selling US Treasuries allows Japan to acquire the dollars needed to buy yen. Such large-scale sales can influence global bond yields and US debt stability.

   What is confirmed

   • Japan's foreign reserves fell to $1.208 trillion in August.
   • Foreign exchange reserves dropped by a record $80 billion in August.
   • Japan's foreign exchange reserves fell 6.18% in August.
   • Tokyo spent about $100.4 billion on yen-buying intervention between July and August.

   Still unconfirmed

   • Japan sold US Treasuries to fund the record yen intervention.
   • Foreign securities holdings plunged $87.8 billion.

   What to watch next

   • Official confirmation of the specific assets sold to fund the intervention
   • Further shifts in Bank of Japan interest rate policy
   • September foreign reserve data releases
   Sources used for this update (13)

   1. Bloomberg.com — Japan Likely Sold Treasuries to Fund Record Yen Intervention
   2. The Japan Times — Japan likely sold Treasurys to fund record yen intervention
   3. bloomingbit — Did Japan Sell US Treasuries to Defend the Yen? Foreign Securities Holdings Plunge $87.8 Billion
   4. TradingView — Japan August foreign reserves fall to $1.208 trln
   5. Finimize — Japan Burned Through Reserves To Put A Floor Under The Yen
   6. Reuters — Japan's August foreign reserves post largest-ever drop after record intervention
   7. the deep dive — Treasury Sales Bankrolled Japan’s Record Currency Intervention
   8. cnbc.com — Japan's foreign reserves drop by a record $80 billion in August following yen intervention
   9. Seeking Alpha — Japan may have sold U.S. Treasuries to fund yen intervention
   10. CNBC TV18 — Is Japan selling US treasuries to save Yen? Here's what we know
   11. صحيفة مال — Japan's foreign exchange reserves fell 6.18% in August
   12. finance.biggo.com — Japan's FX Reserves Tumble $79.6 Billion as Tokyo Shifts From Intervention to Rate Hikes
   confidence 90%