The finance ministers of Japan and the United States have agreed that orderly movements in the yen are essential for the stability of global financial markets. Japanese Finance Minister Katsunobu Kato revealed after talks with US Treasury Secretary Scott Bessent in Asheville, North Carolina, that both sides affirmed that continued cooperation between Japan and the US would support that goal. The talks came a month after the two countries jointly intervened in the foreign exchange market to support the yen, a rare move, and it was reported that Bank of Japan Governor Kazuo Ueda met with Bessent at the same venue, which was hosting the G20 meetings. Bessent told CNBC that he expects Japan to take additional measures to address the yen's weakness and believes that the Japanese government and the BOJ will implement measures that lead to a stronger yen, with the market already reflecting expectations of a BOJ rate hike.
Expectations of BOJ rate hike and stronger yen policy support higher yields.
