About US Treasury redemptions and interest payments

As is customary, one of the seasonal factors is the U.S. government debt redemption and interest payments on February 15 and August 15.

Overview of the relationship between U.S. Treasury redemptions, interest payments, and exchange rates.


◎Types of U.S. Treasuries
・T-Bills(short-term, discount securities)　→ maturities up to a few days to less than 1 year
・T-Notes(medium-term, coupon-bearing securities)　→ maturities of 2・3・・57 years
・T-Bonds(long-term, coupon-bearing securities)　→ maturities of 10 years or more


◎Difference between discount bonds and coupon bonds

In the United States, short-term (within 1 year) government bonds are discount bonds. For mid- to long-term (2 years or more) government bonds, coupon bonds seem to be the case.


Discount bonds are purchased at a price discounted from the face value, and at maturity you receive the face value.

Coupon bonds are purchased at face value, you receive interest semiannually, and at maturity you receive the face value.
(Interest payment dates: February 15 and August 15)


◎Relation to the exchange rate(U.S. Treasuries and USD/JPY)

U.S. Treasury redemption funds and interest payments received by financial institutions, companies, and investors(in U.S. dollars)

→Profits are brought back to Japan

→

.→Exchange USD to JPY

→There is selling of dollars and buying of yen.


I considered U.S. Treasuries, but basically I think the relationship with foreign government bonds is not fundamentally different.

Amounts vary by year, so it is better to check each time.

This is a real-demand movement, so please note.