TOKYO - Japan's foreign exchange reserves at the end of June fell $4.84 billion from a month earlier to $1,019.18 billion, mainly due to a fall in the value of its holdings of U.S. Treasury bonds
during the period, the Finance Ministry said Tuesday.
long-term interest rates fell slightly overnight due to the outcome of the U.S. Treasury bond
long-term interest rates fell slightly overnight because the auction of U.S. Treasury bonds
Japan's foreign reserves decreased from late January for the second straight month to $1,009.35 billion, as U.S. Treasury bond
prices sank with rising yields.
stocks to plunge and the U.S. Treasury bond
market to rise on Tuesday.
Japan's foreign exchange reserves at the end of January fell from late December on declines in U.S. Treasury bond
prices and the appraisal value of the nation's euro-denominated assets, but stayed above the $1 trillion mark for the third straight month, the Finance Ministry said Friday.
A steep sell-off in U.S. Treasury bonds
that started midweek and pushed 10-year yields to seven-year highs has weighed on stocks and rippled through bond markets globally.
Quantitative easing, or the Federal Reserve's strategy of buying up U.S. Treasury bonds
and mortgage-backed securities to drive down long-term interest rates, makes it relatively inexpensive to borrow, especially for banks, institutions and private companies.
U.S. Treasury bonds
, due to their security, gauge interest rates by setting the interest rate floor of financial markets.
According to research from the University of California-Davis, premium rates are actually tied to the rise and fall of the Dow Jones Industrial Average and interest rates on U.S. Treasury bonds
. Using information from the U.S.
The UAE central bank does not hold any U.S. treasury bonds
or government financial instruments, it said in July.
A point to keep in mind: In 1984, foreign entities owned 22 percent of U.S. Treasury bonds
; today, foreign entities own 57 percent of U.S.