The Japanese economy minister Maehara says buying foreign bonds is effective easing policy. And that BOJ foreign bond buying is being considered.
Japan buys some foreign bonds in the current framework but largely through the MOF and government institutions. This is a new QE frontier.
Of course, the Fed wouldn’t mind, because it will help keep US rates low.
Congress, however, might think it’s currency devaluation.
USD/JPY not biting hard on this but if the BOJ buys US Treasuries in size, it would be a game changer.
