Finance Minister Kaoru Yosano has said his government is confident about the outlook for U.S. Treasuries, signaling the second-biggest foreign holder of the securities will keep buying them amid record sales.
"We have complete trust in the fact that the U.S. views its strong-dollar policy as fundamental," Yosano, 70, said in an interview Wednesday in Tokyo before attending a Group of Eight meeting of finance ministers starting Friday in Italy. "So our trust in U.S. Treasuries is absolutely unshakable."
The U.S. government has come under fire from some creditors as spending to prop up its economy is projected to quadruple its budget deficit to $1.85 trillion in the year ending Sept. 30. China and Russia, the largest and third-largest single holders of the debt, have said they may reduce their reliance on dollar-denominated assets, fueling a surge in Treasury yields to a seven-month high.