Japan Rates, Intervention and Yen Volatility Raise Global Funding Risk

Japan's 10-year JGB yield reached 3% as oil-driven inflation, expected BOJ tightening, yen weakness, and expansionary fiscal plans pressured the curve. Reported ¥27.1 trillion intervention and a $79.6 billion monthly reserve decline raise questions about remaining FX capacity, possible Treasury sales, and carry-unwind transmission into global duration markets.