3 ms·
Hm, maybe this is your misunderstanding: - the fiscal position (the amount of debt the US owes) does not change by Japan selling the US treasures to other (non
by don_esteban 2mo ago
Hm, maybe this is your misunderstanding:
- the fiscal position (the amount of debt the US owes) does not change by Japan selling the US treasures to other (non US) party
- but the party that bought the treasures from Japan will not be buying them from US, hence diminishing the demand for them, therefore raising the yield
- jordanb 2mo ago* Japan liquidating its reserves to protect the Yen and its effect on US treasury yield or anything else can easily be undone by the Fed, if so desired. With an impact on the Fed's balance sheet for sure, but at a cost to Japan of liquidating its reserves * Instead the US Treasury intervened to protect the Yen, allowing Japan to maintain its reserves while there still ended up being balance sheet consequences for the US