Japan Unlikely to Sell Mid-Term U.S. Treasuries for Intervention, Long-End Yields Impact Limited

PNC-0.62%
According to PNC's head of rates research Isfar Munir, Japan's Ministry of Finance is unlikely to sell even mid-term U.S. Treasuries to fund currency intervention if needed, limiting impact on long-term bond yields. Although 30-year U.S. Treasury sales occurred last week during the yen intervention period, the 30-year swap spread simultaneously narrowed.
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