Bessent presses Japan to prioritize monetary tightening amid 10 trillion yen in suspected currency market interventions.
US Treasury Secretary Scott Bessent arrived in Tokyo to push Japan toward Bank of Japan rate hikes instead of large-scale yen intervention. The visit follows suspected currency support operations totaling up to 10 trillion yen, which Washington fears could disrupt US Treasury markets.
Japanese 10-year bond yields hit their highest level since 1997, raising concerns that further increases may lift US Treasury yields. Yen interventions are often funded by selling US Treasuries, directly impacting US borrowing costs. Bessent has previously called for BOJ action to address inflation, with markets speculating on a rate hike as early as next month.
Discussions will also cover supply-chain resilience and geopolitical risks, including the Iran conflict, alongside monetary policy.