Analysts note that the U.S. Treasury yields have declined while Japanese government bond yields have stayed largely unchanged, narrowing the U.S.-Japan 10-year yield gap. Under normal conditions, this would have supported the yen.

They’re behind the curve so they are going to be hiking and they need to get their inflation problem under control,” Bessent told Bloomberg TV, comments that stood in contrast to the position of Bank of Japan governor Kazuo Ueda.