So they're selling dollars for their own garbage?
Whilst doing YCC?
This seems like a panic move, no?
Once they're out of dollars, it's bye bye, right?
Japan is a major holder of US bonds. They have a long way to go before using up their powder. For the dollar, if major US bond holding nations are forced to liquidate to shore up their own currencies, it will be that much more difficult for the fed to stop buying treasuries. In fact, it seems impossible
Japan said Thursday it intervened in currency markets to sell dollars and buy yen, the first such intervention in 24 years
The link for this post is using an archive for the article on The WSJ's website. An archive has no paywall, no subscription requirement, and can be easier to read. The original article, on The WSJ's website is:
Japan is boosting the yen These central bankers aren't your fren Don't fight, find your zen Need rhymes, just ask @ken
So they're selling dollars for their own garbage? Whilst doing YCC? This seems like a panic move, no? Once they're out of dollars, it's bye bye, right?
Japan is a major holder of US bonds. They have a long way to go before using up their powder. For the dollar, if major US bond holding nations are forced to liquidate to shore up their own currencies, it will be that much more difficult for the fed to stop buying treasuries. In fact, it seems impossible
Right, so it actually has the effect of the Fed reversing its policy sooner.
Got a reply from Lyn Alden here: https://twitter.com/LynAldenContact/status/1572894688415449089
The link for this post is using an archive for the article on The WSJ's website. An archive has no paywall, no subscription requirement, and can be easier to read. The original article, on The WSJ's website is:
Japan Intervenes in Currency Markets to Support Yen https://www.wsj.com/articles/japan-intervenes-in-currency-market-to-support-yen-11663836942
https://twitter.com/NorthmanTrader/status/1572864489707413504 [Nitter]
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