Federal Reserve policy expectation reversed, Japanese funds hit largest US bond sell-off since 2022 Golden Finance reported that on May 13, Japanese investors hit the biggest sell-off of US treasury bond bonds in nearly four years due to the sudden change of policy expectations of the Federal Reserve driven by soaring oil prices. The balance of payments data released by Japan on Wednesday showed that in the three months ended March 31, Japan's net sales of US treasury bond bonds, institutional bonds and local government bonds totaled 4.67 trillion yen (US $29.6 billion), a new high since the second quarter of 2022. In February of this year, the overnight index swap market showed that traders had expected the Federal Reserve to cut interest rates twice this year; After the situation between the United States and Israel impacted the situation in Iran, crude oil prices surged by about 50%, and market inflation expectations rose. Interest rate pricing has shifted to betting on the Federal Reserve raising interest rates.