The Japanese Yen strengthened after US Treasury Secretary Scott Bessent warned against shorting the currency, but his expansion of US Treasury buybacks to $6 billion failed to prevent the 10-year US Treasury yield from rising to 4.836%, a new high since October 2023.
The U.S. Treasury Department announced on Wednesday (September 9) that it would raise the single-transaction long-term Treasury buyback limit to $6 billion, tripling the original size planned for last month. However, market reaction was disappointing, with Treasury yields rising instead of falling. The 10-year U.S. Treasury yield touched 4.836% during intraday trading, its highest level since October 2023. The day before, Scott Bessent had publicly warned the market against shorting the Japanese Yen. The Yen continued its rally on Wednesday, touching 153.49 Yen per U.S. dollar during intraday trading, its strongest level since February. Analysts believe that the strengthening Yen is impacting carry trades, while rising U.S. Treasury yields are suppressing valuations. Both factors pose a dual threat to the U.S. stock market's bull run.
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Source:华尔街见闻 · Source Link
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