The David Lin Report · Wednesday, August 12, 2026
Recent actions, including potential Yen intervention by the US Treasury, signal a move towards yield control, which is seen as bullish for equities. This suggests the government is willing to take measures to prevent interest rates from rising significantly, a stance supported by the Trump administration.
“Now, the, uh, counter argument here is that the, uh, Yen intervention that we saw a week and a half ago by a Scott Besson in the Treasury, that can be interpreted as extremely bullish for equities because what the Fed has, what the government has basically signaling with this move is that they're willing to engage in some sort of yield control, maybe not directly, but the logic here is buying the Yen with backstop, uh, or prevent the Japanese from selling off a lot of Treasuries, which would push yields even higher.”
“So, indirectly yield control, they're going to do whatever it takes to prevent interest rates from going up. Remember Trump and his administration do not want higher interest rates. Correct. And this is an incredibly bullish move. What do you think?”
“I agree with you 100%. Uh, I think that, uh, the trend, uh, prospectively and and now you can see the alignment between the, uh, Japanese and and the US is that the Yen will either naturally or through some intervention stabilize and or actually appreciate relative to the US dollar over the next couple of years.”