U.S.-Japan Intervention Hints at Concerns Over Treasury Market -- Market Talk

0958 GMT - Concerns about Japan offloading Treasury holdings to fund currency interventions possibly encouraged the U.S. to join Japan in efforts to strengthen the yen, MUFG Bank's Derek Halpenny says in a note. The U.S. and Japan carried out a joint intervention to shore up the yen at the end of July. Japan's finance ministry said it planned to make use of the Federal Reserve's FIMA repo facility, which allows central banks to raise dollar cash without selling Treasurys. This "gave the impression of a growing concern over the stability of the U.S. Treasury bond market that could turn out to have been a counterproductive move by the U.S. Treasury," Halppeny says. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

August 18, 2026 05:58 ET (09:58 GMT)