Sell US bonds to fund the largest-ever yen market intervention in history.

Over the past month, Japan has been using its overseas securities reserves, including US Treasury bonds, to fund record-breaking interventions in the yen exchange rate, which may have attracted the attention of the US government. Data released by the Japanese Ministry of Finance last Friday showed that Japan's overseas securities holdings decreased by $75.6 billion at the end of May compared to April, a decrease that closely matches the scale of recent interventions to support the yen in the market. The Ministry of Finance has confirmed that the total amount of monthly interventions in the foreign exchange market reached a record high of 11.73 trillion yen by May 28. A Ministry of Finance official admitted during a financial reporting conference that the exchange rate intervention was one of the main reasons for the significant reduction in foreign exchange reserves, with the largest decline in reserves in history. The US Treasury may have difficulty approving the sale of US Treasury bonds associated with exchange rate interventions, as US officials are increasingly concerned about the stability of the US Treasury market. Earlier this year, US Treasury Secretary Scott Bessen warned Japan that volatility in the Japanese bond market may transmit to the US Treasury market, highlighting their vigilance against large-scale foreign sell-offs of US Treasury bonds.