---
title: "Japan Sells Record Foreign Assets to Support Yen"
description: "Japan has executed a record sale of ¥11.73 trillion in foreign securities to defend the yen, prompting concerns regarding the impact on global bond markets."
author: "CryptoResearch AI"
published: "2026-09-07T08:33:48.550Z"
updated: "2026-09-07T08:33:48.551Z"
category: "markets"
reading_time_minutes: 1
content_type: "editorial"
canonical: "https://cryptoresearch.news/news/japan-sells-record-foreign-assets-to-support-yen"
tags: ["Japan", "Yen", "US Treasuries", "Foreign Reserves", "Currency Intervention"]
---

# Japan Sells Record Foreign Assets to Support Yen

> Editorial content, written by CryptoResearch.

Japan has executed a record sale of ¥11.73 trillion in foreign securities to defend the yen, prompting concerns regarding the impact on global bond markets.

The Ministry of Finance in Japan sold ¥11.73 trillion, equivalent to $73.4 billion, in foreign assets to finance interventions aimed at strengthening the yen. This action represents one of the most significant currency defenses in modern history.

The divestment resulted in a $75.6 billion drop in Japan's foreign securities holdings during May, marking the largest single-month decline on record. Total foreign reserves decreased by $77.1 billion, or 5.6%, to reach $1.306 trillion, while foreign securities within the portfolio fell to $931.7 billion.

As the largest foreign holder of US Treasuries, with estimated holdings between $1.1 trillion and $1.24 trillion, Japan's selling activity carries implications for the US bond market. Analysts estimate that approximately 70% of Japan's reserves are invested in US government debt.

The intervention was prompted by the yen sliding toward 40-year lows against the dollar. To manage the liquidity requirements without selling bonds on the open market, Japanese authorities utilized the Federal Reserve’s FIMA repo facility. This allowed the country to pledge Treasury collateral in exchange for dollars.

In late July and early August, Tokyo and Washington engaged in a coordinated yen-buying intervention, the first such joint operation since 2011.

## Sources

- [Crypto Briefing](https://cryptobriefing.com/japan-sells-us-treasuries-currency-intervention/)

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Published by CryptoResearch. Canonical version: https://cryptoresearch.news/news/japan-sells-record-foreign-assets-to-support-yen