The CITIC Securities Research Report pointed out that on July 30, Beijing time, the yen appreciated sharply, and the market generally believed that Japan's Ministry of Finance entered the market to buy yen. On July 31, EST, Japan's Ministry of Finance and the US Treasury officially implemented coordinated intervention in the Japanese yen exchange rate. This is the first time since 1998 that the US and Japan have jointly purchased yen. It is also the first time that the US has participated in the Japanese yen intervention since the G7 coordinated action in 2011. The yen appreciated sharply against the US dollar in a short period of time. We believe that the essence of the joint intervention is “stabilizing the yen and isolating US debt”: after the effects of Japan's unilateral instruments weakened, the US used actual funding to increase the credibility of the intervention, and at the same time prevent intervention operations from affecting the US debt market through FIMA and other arrangements. After the joint intervention of the US and Japan, the risk-benefit ratio of shorting the yen deteriorated markedly, but the two major causes of depreciation, Japan's fiscal expansion and the interest rate spread between the US and Japan, have not changed. The yen is still difficult to say that the trend has reversed, and the probability of repeating the reversal of arbitrage trading in August 2024 is not high.

The CITIC Securities Research Report pointed out that on July 30, Beijing time, the yen appreciated sharply, and the market generally believed that Japan's Ministry of Finance entered the market to buy yen. On July 31, EST, Japan's Ministry of Finance and the US Treasury officially implemented coordinated intervention in the Japanese yen exchange rate. This is the first time since 1998 that the US and Japan have jointly purchased yen. It is also the first time that the US has participated in the Japanese yen intervention since the G7 coordinated action in 2011. The yen appreciated sharply against the US dollar in a short period of time. We believe that the essence of the joint intervention is “stabilizing the yen and isolating US debt”: after the effects of Japan's unilateral instruments weakened, the US used actual funding to increase the credibility of the intervention, and at the same time prevent intervention operations from affecting the US debt market through FIMA and other arrangements. After the joint intervention of the US and Japan, the risk-benefit ratio of shorting the yen deteriorated markedly, but the two major causes of depreciation, Japan's fiscal expansion and the interest rate spread between the US and Japan, have not changed. The yen is still difficult to say that the trend has reversed, and the probability of repeating the reversal of arbitrage trading in August 2024 is not high.