Japanese treasury bonds have been sold off by investors due to renewed tension in the Middle East and recent market concerns that Japan's fiscal situation may deteriorate further. On the 17th, the yield on Japan's 10-year treasury bonds continued to rise. At one point, it rose to 2.93%, a new high in nearly 30 years. Meanwhile, just two weeks after the US and Japan joined forces to intervene in the foreign exchange market, the yen exchange rate once again approached the low of 160 yen per dollar. According to industry analysts, foreign exchange intervention can temporarily change the exchange rate, but it is difficult to change Japan's economic logic. Under the three major pressures of weak yen, low growth, and high debt, the Japanese economy is facing increasingly severe tests. Some analysts said that the more Japan tries to boost the economy through stimulus, the greater the pressure on finance and exchange rates. Therefore, the only thing that can stabilize the yen exchange rate is the optimization of Japan's economic growth model and fiscal structure. As far as the Japanese government is concerned, what it really needs to face is probably never just “defending the yen,” but the ability of the Japanese economy to regain continuous growth.

Japanese treasury bonds have been sold off by investors due to renewed tension in the Middle East and recent market concerns that Japan's fiscal situation may deteriorate further. On the 17th, the yield on Japan's 10-year treasury bonds continued to rise. At one point, it rose to 2.93%, a new high in nearly 30 years. Meanwhile, just two weeks after the US and Japan joined forces to intervene in the foreign exchange market, the yen exchange rate once again approached the low of 160 yen per dollar. According to industry analysts, foreign exchange intervention can temporarily change the exchange rate, but it is difficult to change Japan's economic logic. Under the three major pressures of weak yen, low growth, and high debt, the Japanese economy is facing increasingly severe tests. Some analysts said that the more Japan tries to boost the economy through stimulus, the greater the pressure on finance and exchange rates. Therefore, the only thing that can stabilize the yen exchange rate is the optimization of Japan's economic growth model and fiscal structure. As far as the Japanese government is concerned, what it really needs to face is probably never just “defending the yen,” but the ability of the Japanese economy to regain continuous growth.