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Japan’s 30-year bond yield tops 4.2% as yen nears ¥160

Japan has stepped up warnings of yen support as the currency moves back toward ¥160 per dollar. Finance Minister Katayama said officials would not hesitate to take bold action, while currency diplomat Mimura said funding constraints would not limit yen-buying intervention. Officials have also checked exchange rates with banks.

The response is getting harder to manage as borrowing costs rise. Japan’s 30-year government bond yield has broken above 4.2%, versus near zero a decade ago, and uncertainty over future yields and Bank of Japan rate hikes is holding back a much larger repatriation of overseas Japanese assets.

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4d

Finance Minister Katayama said Japan would not hesitate to take bold action on the yen.

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Japan’s 30-year bond yield broke above 4.2%, an all-time high in the cited source.

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Currency diplomat Mimura said Japan had no concern that funding constraints could limit yen-buying intervention.

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