Updated
Updated · Bloomberg · Aug 3
US Buys Yen for First Time Since 1998 as Bessent Eyes Treasury Yields
Updated
Updated · Bloomberg · Aug 3

US Buys Yen for First Time Since 1998 as Bessent Eyes Treasury Yields

3 articles · Updated · Bloomberg · Aug 3

Summary

  • Friday’s intervention marked the first US yen purchases since 1998, pushing the Treasury into new territory in currency-market operations under Secretary Scott Bessent.
  • The move was likely aimed at influencing US Treasury yields, using the foreign-exchange market as part of a broader rates strategy.
  • The 1998 comparison ties the action to the Asian financial crisis era, underscoring how unusual direct US yen buying has been.
  • Bessent’s step suggests the Treasury is willing to use currency-market tools more aggressively as it navigates pressure in the US bond market.

Insights

Will Washington's sudden currency intervention set a dangerous precedent that triggers a broader global currency war?
Could this rare U.S. yen purchase actually be a secret shield to protect America's own fragile bond market?