#BTC
Japan sold 29.6 billion of U.S. Treasuries in the first quarter, and now it has been forced to keep selling.
The yen can’t hold up; without selling U.S. Treasuries, there’s no money to intervene.
The problem is that when Treasuries are sold, yields move higher, the dollar strengthens instead, and risk assets get drained of liquidity.
What’s more complex than safe-haven flows is that the liquidity structure is changing.
Japan sold 29.6 billion of U.S. Treasuries in the first quarter, and now it has been forced to keep selling.
The yen can’t hold up; without selling U.S. Treasuries, there’s no money to intervene.
The problem is that when Treasuries are sold, yields move higher, the dollar strengthens instead, and risk assets get drained of liquidity.
What’s more complex than safe-haven flows is that the liquidity structure is changing.
