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US-Japan Buy $5-10 B Yen, Avert $1.1 T Bond Dump

8/5/2026

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Story summary
  • U.S. Treasury Secretary Scott Bessent led a joint U.S.–Japan intervention to buy $5-10 billion of yen.
  • The Treasury used euro holdings for the purchase to limit dollar downside pressure.
  • He cited the Federal Reserve’s Foreign and International Monetary Authorities Repo Facility (FIMA) so Japan could act without selling its $1 trillion-plus Treasury stockpile.
  • Officials warned the move could stop Japan from dumping $1.1 trillion of U.S. bonds, which would raise U.S. yields.