Japan financed a record-breaking yen intervention in the foreign exchange market by selling US bonds.

Japan may have used its holdings of foreign securities, including US Treasuries, to provide funds for record-breaking intervention in the currency market over the past month, a move that could attract attention from the US side. According to data released by the Japanese Ministry of Finance on Friday, as of the end of May, Japan's holdings of foreign securities decreased by $75.6 billion compared to April. This decrease is roughly equivalent to the amount Japan recently intervened in the market to support the yen. The Japanese Ministry of Finance confirmed last week that the amount of funds used for currency market intervention in May reached a record high of 11.73 trillion yen. A Ministry of Finance official speaking at a briefing admitted that currency market intervention was one of the main reasons for the significant decrease in foreign exchange reserves holdings, and stated that this decrease was the largest on record.