According to Wu Blockchain, BitMEX co-founder Arthur Hayes shared a post stating that the weakening of the Japanese yen alongside the rising yields of Japanese Government Bonds (JGBs) reflects structural pressures within Japan's financial system spilling over. This anomaly might prompt the U.S. Treasury and the Federal Reserve System, operating through the New York Fed, to intervene via the forex and bond markets. Hayes believes the theoretical approach would involve the New York Fed selling USD through primary dealers, buying JPY, and using JPY to purchase JGBs. This would lower JGB yields, stabilize the yen, and effectively expand the Fed's balance sheet while releasing liquidity. Under this scenario, the liquidity release could cushion the impact of Japanese capital repatriation on U.S. Treasury yields and potentially provide short-term support for risk assets, including Bitcoin, as the Fed's balance sheet expands. However, this assumes the yen's appreciation remains moderate; otherwise, it could trigger deleveraging risks tied to yen-based financing. https://www.(wublock123.com)/index.php?m=content&c=index&a=show&catid=6&id=55783