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☆ Yσɠƚԋσʂ ☆
lemmy.ml
yogthos@lemmy.mlJoined: 2020-01-18 |
Japan spent $53 billion intervening in the currency market on Thursday. This is probably the largest single day intervention in history. And it only gets better because the US Treasury has reportedly told a number of banks through the NY Fed to stand by for future actions in the yen market. Well, Japan owns $1.1 trillion of US Treasuries, and a yen in free fall forces Japanese institutions to fund hedges and repatriate. USDT is obviously the asset they would sell. The US 30 year is at a 19 year high with $8 trillion of paper maturing inside a year. Washington can't afford its biggest foreign creditor to become a seller, so it's cheaper to buy yen than to buy back its own bonds. |
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