Japan Likely Sold US Treasuries to Fund Yen Intervention

Bloomberg reports that Japan probably sold some of its holdings of US Treasury bonds. The move was to raise dollars for its recent yen-buying intervention.

Market analysts say the sales helped stabilise the yen. Japan’s Ministry of Finance has not confirmed the exact amount sold.

The intervention was aimed at slowing the yen’s sharp fall against the dollar. Selling Treasuries is one way to get the needed foreign currency quickly.

This is not the first time Japan has used such a strategy. It signals the government’s determination to defend the yen.