Japan's playing the same old card again to prop up the yen — and risk assets could feel the squeeze.
🕕 Around 6:50 PM ET update:
Reports suggest Japan may need to sell foreign bonds (mostly U.S. Treasuries) to defend the weakening yen amid ongoing pressures.
Last time they intervened big?
👉 Hundreds of billions in sales hit markets hard 📉
This round?
💣 With yen near multi-month lows post-BOJ hike, potential forced selling could tighten global liquidity fast.
Why it hits hard:
• Yen support → sell foreign assets
• U.S. yields rise → less easy money worldwide
• Stocks, crypto, and risk-on plays take the hit
Simple version: Japan buys yen → dumps bonds → higher rates → liquidity crunch → markets wobble.
If things turn shaky out of nowhere, this might be the hidden trigger.
Watch closely into year-end.
