Yen Carry Unwind Could Blow Up The Long End

The July 31 U.S.-Japan intervention to strengthen the yen may not necessarily support long-dated U.S. Treasuries, despite Japan being the largest foreign holder of U.S. government debt. A stronger yen could reduce Japan's need to sell Treasuries to purchase yen, but the article questions whether this mechanism is materially positive for the U.S. long end.