Joint U.S.-Japan Yen Intervention Unlikely in Near Term, RBC Analyst Says on July 2

According to Russell Matthews, analyst at Royal Bank of Canada's BlueBay Asset Management, joint U.S.-Japan intervention to support the yen appears unlikely in the near term on July 2. Matthews noted that stable core government bond yields may deter U.S. involvement. However, as the yen continues to weaken, Japan's long-term government bond yields could face greater volatility, with the 10-year yield approaching 3.0%. Such volatility could spread to U.S. Treasuries and global government bonds, potentially increasing the necessity for coordinated intervention. Matthews described Tokyo's potential intervention measures as increasingly "sporadic and random."
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