Markets Debate If Japan Sold Treasuries When Intervening in Yen

AI Summary

The markets are analyzing whether Japan sold U.S. Treasuries during its recent currency intervention. This evaluation comes on the heels of a decline in the Federal Reserve's custody holdings, raising questions about Japan's foreign exchange strategy.

The Federal Reserve’s custody holdings of Treasuries fell for the first time in a month at a time Japan was likely intervening to support its currency, with markets debating whether the nation offloaded US securities to fund its yen purchases.