US-Japan joint intervention aims to steady yen and protect US bond markets

The US and Japan coordinated a rare yen-buying intervention—the first since 1998—to counter a slide that threatens U.S. Treasury markets and dollar liquidity. Officials emphasized avoiding forced selling of Treasuries and used the Fed’s FIMA repo facility to provide dollar liquidity, signaling readiness to act again. While it may stabilize near-term markets, analysts say lasting relief depends on Japan’s policy normalization and underlying macro forces driving yen weakness.