Is the Japanese yen strengthening? Citigroup: Japan's $550 billion investment fund may trigger a "mini Mar-a-Lago agreement"

Wallstreetcn
2025.09.13 02:32
portai
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Japan's planned investment fund may heavily rely on its $1.3 trillion foreign exchange reserves. U.S. Treasury bonds are a key component of these reserves, with an estimated duration of 3-5 years. If Japan finances this long-term investment fund by selling short-term U.S. Treasury bonds, this capital movement could push up U.S. long-term bond yields, thereby weakening the dollar and strengthening the yen