Japan’s benchmark borrowing costs rose to their highest level in three decades on Tuesday, with the 10-year yield exceeding 3% for the first time since 1996. The yen traded at 160.1 per dollar, breaching the 160 level for the third consecutive session, increasing the likelihood of further currency intervention. U.S. Treasury Secretary Scott Bessent said he has information the market does not have and believes the Japanese government and the Bank of Japan will take steps to strengthen the yen. Japan’s benchmark rate currently stands at 1%, but the market now anticipates a terminal rate of 1.75% or higher for the September meeting. Japan remains the largest foreign holder of U.S. government debt, raising concerns in Washington about a potential mass Treasury selloff in the event of a major intervention.
Source: Read the original article
