Moves by the U.S. to contain bond yields may be a prelude to more coordination between Japan and the United States to restore market stability, with an emphasis on both nations getting their finances in order.??
“It’s possible that the U.S. and Japan will agree to work together to focus more on fiscal sustainability and communicate that to the market,” said Kyohei Morita, chief economist at Nomura Securities.?
Last week, U.S. Treasury Secretary Scott Bessent surprised the market with a plan to double buybacks of long-dated government bonds. This, he said, would be accompanied by a plan to improve U.S. fiscal health.?
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