🇺🇸 The U.S. Treasury Department bought Japanese yen by selling euros to the FT on Friday.
🔹 The New York Fed carried out these sales on behalf of the Treasury through Goldman Sachs and Morgan Stanley.
🔹 In particular, the Fed used euro reserves instead of dollars to finance the purchases.
🔹 This is the first time that the U.S. and Japan have jointly intervened to buy together after nearly 30 years, following a currency slide to the weakest level against the dollar since 1986.
🚨BREAKING NEWS: US 30-year Treasury bond yield rises to 5.27%, the highest level since 2007.
📈Rising oil prices have increased fears of inflation, causing a jump in bond yields and boosting expectations that the Fed could raise interest rates this fall.
🚨 The yield on Turkey’s 10-year Treasury bond rose to 4.74% on Friday, returning to its highest level since January 2025 ➕ Investors assessed hawkish remarks from Fed policymakers that reinforced the need for higher interest rates to rein in inflation ➕ Minneapolis Fed President Neel Kashkari said he would prefer smaller rate hikes now rather than waiting, while Cleveland Fed President Beth Hammack warned that the longer inflation stays high, the harder and more costly it will be to bring it back to target.
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