A senior official from Japan's Ministry of Finance stated that the ministry is monitoring the potential impact of a sell-off in U.S. Treasury bonds on the Japanese yen. The official, speaking to reporters in Paris, explained that selling U.S. bonds drives up their yields, which could lead to a depreciation of the yen. This outcome would contradict Japan's objectives for intervening in the foreign exchange market. The official added that Japan possesses sufficient cash and deposits to carry out such currency market interventions. The comments were made during the official's attendance at the G7 meeting of finance ministers and central bank governors in Paris.
Comments