US Treasury undertakes historic intervention in yen market
1–10 of 219 posts
Re: US Treasury undertakes historic intervention in yen market
#2Re: US Treasury undertakes historic intervention in yen market
#3Doesn'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?
Re: US Treasury undertakes historic intervention in yen market
#4Doesn'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?
I don’t think the ECB would intervene, a lower euro is not a panacea but helps local industry compete with Chinese industry.
Re: US Treasury undertakes historic intervention in yen market
#5Japan 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, and could trigger more panic selling from others.
I guess this is Bessent's scheme to try and kick that can down the road.
Re: US Treasury undertakes historic intervention in yen market
#6Japan 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.
Re: US Treasury undertakes historic intervention in yen market
#7Doesn'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?
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.
Re: US Treasury undertakes historic intervention in yen market
#8Japan 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.
If you can manipulate the market why not do it?
Literally no one benefits from the alternative.
Re: US Treasury undertakes historic intervention in yen market
#9Japan 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.
If you can manipulate the market why not do it? Literally no one benefits from the alternative.
Manipulation of the market never comes for free.
You just delay, and render unpredictable, the eventual reckoning, for short-term benefits.
It will be interesting to see who’s gonna blame the free market when that day arrives.
Re: US Treasury undertakes historic intervention in yen market
#10Can anyone steel man the “this isn’t a big deal” side of this?
On x and reddit all I see are sky is falling posts.