Arthur Hayes: Need to pay attention to the Federal Reserve H.4.1 report to confirm whether Japan is using U.S. Treasury collateral to support yen intervention

Arthur Hayes posted on the X platform that attention should be paid to this week's Federal Reserve H.4.1 report to confirm whether the Japanese Ministry of Finance will use its U.S. Treasury bonds for repurchase in exchange for dollars, and then sell dollars to buy yen. If Bessent can increase the counterparty limit, the Federal Reserve can create money using the U.S. Treasury bonds held by the Japanese Ministry of Finance as collateral.

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