Japan, as the second-largest foreign holder of Treasuries, cannot allow the yen to weaken excessively (it recently hit 160 yen/dollar), so Japan will be forced to sell Treasuries to buy yen and defend its currency, which will flood more Treasuries onto the market at the exact moment when US issuance is also skyrocketing.
forecastpending
Speaker
Mel MadisonEvidence Quote
“If they sell Treasuries to essentially buy uh yen uh to strengthen the yen, um then again, you're going to have more Treasuries flooding into the market.”
Source
Asset Bubble Crescendo Until 2027 Collapse When U.S. Treasury Market Implodes, Argues Mel Mattison— Forward GuidanceCreated: 8/12/2026, 6:43:41 PM
My Notes
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