🚨 BOJ HAS STARTED TO STRENGTHEN THE YEN
And it's something that will impact every asset holder.
Today, Japan's Finance Minister Satsuki Katayama said that Japan is seeking to encourage its Government Pension Investment Fund to boost investment in domestic assets.
She also hinted at "yen repatriation," where Japanese investors, corporations, and institutions sell foreign assets to convert them back into Japanese yen.
Currently, Japan has over $1T+ in foreign assets, and their goal is to sell them for yen.
Most of these foreign assets are T-bills or USD, which means selling them could spike the US bond yields.
Additionally, this action will trigger a yen carry unwind similar to the one in August 2024, which rattled the markets.