The yen hedges against U.S. Treasury yields for the first time in over two years. Will the U.S.'s top overseas "creditor" restart the "buy, buy, buy" model?

With the Federal Reserve cutting interest rates, Japanese investors' currency hedging of U.S. Treasury yields has risen above zero for the first time, with the 10-year U.S. Treasury yield reaching 0.28%. The significant decrease in hedging costs has attracted more investors into the U.S. bond market. Although the hedged yield is still lower than Japanese government bonds, the trend of Japanese funds flowing into U.S. bonds is evident and is expected to be more aggressive next year. Japan has become the largest overseas holder of U.S. Treasuries, with net purchases reaching 15.1 trillion yen in the first 10 months