Japanese banks have a habit of extending additional financing in order to avoid having to write down their assets even when borrowers are effectively insolvent. Extend and pretend, kick the can down the road.
Because funding costs for hedging cross currency trades have gone up ever since the Fed has started raising rates and largely reduced returns or in some cases even caused negative returns. Funding costs have exceeded rate hikes 1:1 and this has caused the foreign buyer base to drop sharply for UST.
