Host alleges Fed backstopped Japan’s Treasury sales via a ‘backdoor’ deal

What was said

"Because the United States doesn't want Japan to sell, and they really don't want Japan to sell because Japan is the number one holder of US Treasuries. They have over a trillion dollars of US Treasuries. They knew that they needed to intervene in the yen bond market. So, they offered a backdoor deal with the Bank of Japan so the Bank of Japan could temporarily unload their US Treasuries to the Federal Reserve in exchange for dollars so those Treasuries didn't get dumped onto the market."

In a short market commentary, the host of Heresy Financial claims — without citing documents or official confirmation — that US authorities arranged a "backdoor" arrangement allowing the Bank of Japan to shift US Treasuries to the Federal Reserve for dollars to avoid a large Treasury sell-off. He argues the motivation was Japan’s status as the largest foreign holder of US Treasuries, and links the alleged intervention to broader efforts to stabilise bond markets.