Japan Blowing Up The Bond Market?

𝐆𝐄𝐓 𝐓𝐇𝐄 𝐁𝐈𝐓𝐂𝐎𝐈𝐍 𝐂𝐎𝐔𝐑𝐒𝐄➜➜➜
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In this video, I discuss the Bank of Japan's (BOJ) intervention to strengthen the yen, and what it means for Fed policy and US Treasury market functioning going forward.

To help to prop up the yen, the BOJ sells Treasuries for USD, and then sells that USD for yen (JPY).

If many central banks are selling Treasuries in order to help defend their currencies, it makes the Fed's job of shrinking its balance sheet that much more difficult.

If the USD remains too strong, Japan and the Europeans may be forced by domestic pressures to buy energy from Putin using JPY and EUR. This would have major implications for geopolitical alliances, as well as energy markets.

Further, if Japan and China keep selling Treasuries, the Fed might be forced to step in and restore stability and liquidity to the Treasury markets much sooner than people expect.

That would mark the end of QT (quantitative tightening, where the Fed shrinks its balance sheet) and the beginning of a new round of QE (quantitative easing, where the Fed buys Treasuries and adds them to its balance sheet).

Not investment advice! Consult a financial advisor.

US rates and bonds:
https://www.bloomberg.com/markets/rates-bonds/government-bonds/us

Japan rates and bonds:
https://www.bloomberg.com/markets/rates-bonds/government-bonds/japan

Japan Jumps Into Market to Buy Yen for First Time in 24 Years:
https://www.wsj.com/articles/japan-intervenes-in-currency-market-to-support-yen-11663836942

Fed's balance sheet:
https://fred.stlouisfed.org/series/WALCL

Major foreign holders of US Treasuries:
https://ticdata.treasury.gov/Publish/mfh.txt

Is The Fed Tanking Markets To Fight Putin?
https://www.youtube.com/watch?v=43pnMqcZbQM&ab_channel=TraderUniversity

I am not being paid or otherwise compensated by any company or cryptocurrency project that I mention in my videos.

My opinion is not for sale. Please do not contact me with any affiliate or advertising deals.

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#usd
#fed

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