A 'new' financial crisis is brewing
https://ifamagazine.com/japans-yen-crisis-could-trigger-us-treasury-selloff/
Nigel Green says that if Japanese authorities are forced into sustained intervention to defend the yen, they may have little choice but to liquidate substantial amounts of foreign reserves, including US government bonds, potentially creating fresh pressure in the worlds most important debt market.
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Japan remains one of the largest foreign holders of US government debt. If intervention efforts become larger, longer, and more frequent, the implications go well beyond the foreign exchange market.
To support the yen, Japanese authorities must sell foreign currency reserves, which are heavily invested in dollar-denominated assets, including US government bonds.
The question investors should be asking instead is: if Japan is, indeed, forced to intervene repeatedly, what assets will it have to sell to defend its currency? If the answer increasingly includes US Treasuries, then what appears to be a Japanese currency crisis today would rapidly become a global bond market crisis tomorrow.