RBC BlueBay Asset Management analyst Russell Matthews said a coordinated
US-Japan FX intervention to lift the yen is unlikely for now, as relatively
stable core government bond yields reduce US willingness to act. He warned
sustained yen weakness could provoke larger moves in Japanese government bond
yields — 10-year JGBs approaching 3.0% — with potential spillovers to USTs and
global sovereigns that would increase the case for coordinated intervention. The
firm remains neutral on the yen; Matthews added Tokyo's interventions appear
"increasingly random and sporadic."
