Strengthening US Treasury buyback operations has been cited as a measure to curb the rise in US long-term interest rates, with some analysts pointing to the possibility that this could also affect Japan's long-term interest rates.
The article discusses the possibility that the US Treasury may consider and implement stronger buyback operations as a measure to curb the rise in US long-term interest rates. In the past, policy measures such as twist operations and quantitative easing have been used to suppress long-term rates, and similar action is attracting attention this time as well.
The article notes that the aim of preventing a rise in long-term rates could link interest rates in the US and Japan and potentially affect trends in Japan's long-term interest rates. It presents the view that US action could also contribute to stabilising Japan's interest-rate market.
It also touches on the possibility that trends in US and Japanese long-term interest rates could affect the US dollar/yen exchange rate. It says concerns over fiscal discipline influenced long-term interest-rate movements, contributing to the shift to yen depreciation after the coordinated US-Japan intervention in July and the subsequent reversal.
There is also a view that pressure on Japan to curb long-term interest rates could intensify. If that happens, it could cast a shadow over the fiscal impact of the consumption tax cuts being pursued by the Takaichi administration, the article explains.