Arthur Hayes: Watch the Fed's H.4.1 Report to Confirm Whether Japan Is Using U.S. Treasuries as Collateral to Support Yen Intervention

Odaily News: Arthur Hayes posted on platform X, stating that attention should be paid to this week's Federal Reserve H.4.1 report to confirm whether Japan's Ministry of Finance is using its U.S. Treasuries in repurchase agreements to obtain dollars, followed by selling dollars to buy yen. If Bessent can raise the counterparty limit, the Federal Reserve could use U.S. Treasuries held by Japan's Ministry of Finance as collateral to create money.

Earlier, U.S. Treasury Secretary Scott Bessent stated that the U.S. and Japan have taken coordinated foreign exchange actions in response to the "disorderly fluctuations" in the yen market.