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Japan Casts Doubt on US Treasury Sales to Support Yen

BY MT Newswires | TREASURY | 06:30 PM EDT

06:30 PM EDT, 05/18/2026 (MT Newswires) -- A senior Japanese Finance Ministry official has cast doubt on the prospect of Japan selling US Treasuries to support the yen, saying such a move could push US bond yields higher and ultimately weaken the Japanese currency, Bloomberg reported on Monday.

The official said Japan has sufficient cash and deposit reserves available for currency intervention.

The comments came after US Treasury Secretary Scott Bessent visited Tokyo last week, where both sides agreed that "excess volatility is undesirable" in currency markets.

Japan is believed to have intervened in currency markets starting late last month to support the yen, though the currency has remained under pressure against the dollar.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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