Bonds
Next Japan Intervention Likely to Use Treasury Sales, Bank of America Says
- Japan likely stepped in to support yen in recent weeks
- Future intervention to come from T-bill sales, not cash: BofA
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Any future foreign-exchange intervention by Japan to support the yen would likely involve tapping its holdings of US Treasuries, according to Bank of America Corp.
Japanese authorities likely stepped in on two occasions in recent weeks to bolster the yen as it reached the weakest levels in several decades versus the dollar, and they probably used their cash reserves to accomplish that.