Japan's Yen at a Crossroads: Debt, Yields, and the Asset Sell-off Option

Japan's yen is weakening as markets demand higher interest rates, but raising rates risks a fiscal crisis given gross debt around 240% of GDP while net debt is about 130%. Official FX intervention is unlikely to stop the slide; the more viable path is to reduce gross debt by selling government assets, which could ease depreciation, though illiquid assets and policy risks complicate any such move.