US-Japan yen intervention reflects pragmatism behind show of 'friendship'

CurrenciesLending dollars with Treasurys as collateral avoids disastrous debt sell-offU.S. Treasury Secretary Scott Bessent and Japanese Finance Minister Satsuki Katayama have both mentioned the use of a repo facility in the coordinated yen intervention. (Nikkei montage/Source photos by Reuters and Nikkei)HIROFUMI TAKEUCHI and IORI KAWATEAugust 5, 2026 02:04 JSTNEW YORK/WASHINGTON -- The intervention by the U.S. and Japan to shore up the yen involved Washington lending dollars with Treasury bonds as collateral, a practical move aimed at preventing a Treasurys sell-off by Tokyo even though U.S. President Donald Trump called it a "signal of friendship."