Yen Carry Dynamics Reassert Themselves in U.S. Treasury Pricing
Strategists highlight the renewed sensitivity of long-end Treasury yields to Japanese currency and rate moves, while the New York Fed confirms no reserve management purchases in the month to mid-September.
Fixed income desks are refocusing on the yen–Treasury linkage as Japanese policy normalization alters the marginal buyer base for U.S. duration. The New York Fed separately disclosed it conducted no reserve management purchases through mid-September, leaving the liquidity backdrop tighter than some money-market participants had assumed.