Japan may reduce its holdings of foreign securities to provide funds for record breaking foreign exchange market intervention

Japan may have used its holdings of foreign securities, including US treasury bond bonds, to fund a record foreign exchange intervention in the past month. The reserve data released by the Japanese Ministry of Finance shows that as of the end of May, Japan's holdings of foreign securities decreased by $75.6 billion compared to April. The Japanese Ministry of Finance confirmed that as of May 27th, the amount of funds used for foreign exchange intervention for the month reached a record high of 11.73 trillion yen. Officials from the Ministry of Finance acknowledge that foreign exchange market intervention is one of the reasons for the significant decline in foreign exchange reserve holdings, and this decline is the largest on record.