Mirroring Yen Intervention Logic: Treasury Protects Yields, Dollar Continues to Weaken

English summary

The US Treasury announced it will increase long-term bond repurchase scale from $2 billion to $4 billion starting September 9, pushing Treasury yields down and sending the dollar to its lowest since May. The market compares this to Japan's currency intervention, while the US-Japan policy gap and tech bond issuance continue to impact bond and FX markets. This may increase dollar volatility and affect US Treasuries and yen-related assets.