Over the past month, Japan may have sold some of its foreign securities holdings, including US Treasury bonds, to fund its record-scale exchange intervention. According to reserve data released by Japan's Ministry of Finance on Monday, securities holdings outside Japan fell by 87.8 billion US dollars at the end of August compared to the previous month. This decline is close to the scale of Japan's recent intervention in the Japanese yen. The Ministry of Finance previously confirmed that in the month up to August 26, the authorities used a scale equivalent to 96.4 billion US dollars, setting a monthly intervention record, and some operations were carried out in collaboration with the US. The data did not disclose a breakdown of the types and terms of securities holdings, but market participants estimate that about 70% of Japan's foreign exchange reserves are allocated to US Treasury bonds.

Over the past month, Japan may have sold some of its foreign securities holdings, including US Treasury bonds, to fund its record-scale exchange intervention. According to reserve data released by Japan's Ministry of Finance on Monday, securities holdings outside Japan fell by 87.8 billion US dollars at the end of August compared to the previous month. This decline is close to the scale of Japan's recent intervention in the Japanese yen. The Ministry of Finance previously confirmed that in the month up to August 26, the authorities used a scale equivalent to 96.4 billion US dollars, setting a monthly intervention record, and some operations were carried out in collaboration with the US. The data did not disclose a breakdown of the types and terms of securities holdings, but market participants estimate that about 70% of Japan's foreign exchange reserves are allocated to US Treasury bonds.