Japan yen intervention and BOJ rate hike bets
Coordinated yen intervention has had limited effectiveness; yen weakening past 159 tests intervention resolve. Markets price 76% probability of a BOJ September hike, which would impact JGB yields and Japan's $1.14T Treasury holdings. Spillover risk to US Treasuries remains critical. Weak JGB auction post-intervention signals potential capital repatriation.
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Updated Aug 15, 2026