The Japanese yen is poised to break out against other major currencies, as bond yields in Japan are set to surge. This could reduce the financing of US markets by Japanese investors, and put downward pressure on the dollar.
(Bloomberg) — The amount of money that investors are parking at a major Federal Reserve facility dropped below $1 trillion for the first time in more than two years.
A total of 94 participants on Thursday put a combined $993 billion at the Fed’s overnight reverse repurchase agreement facility, used by banks, government sponsored enterprises and money-market mutual funds to earn interest. It marks a steep decline from a record $2.554 trillion stashed on Dec. 30 and is the smallest sum since August 2021.