The central bank said that it will reduce the monthly outright purchases of JGBs to about 3 trillion yen per month in the January to March 2026 quarter.
Japanese investors hold a large chunk of US bonds. With the yen rallying against the dollar and US rates being high, they’re looking to dump their bonds because otherwise they’re going to start losing money on them.
Can someone ELI5?
Japanese investors hold a large chunk of US bonds. With the yen rallying against the dollar and US rates being high, they’re looking to dump their bonds because otherwise they’re going to start losing money on them.
Oh and the implication is that that could further devalue US bonds. Got ya, thanks.