JGBs have sold-off while changes to USDJPY and JPY basis have been relatively limited. The Bank of Japan’s March Tankan survey showed business sentiment worsened only slightly, as the jitters over the US and European banking sectors have not yet spread to Tokyo. However, the Nikkei Average is up only slightly as foreign investors unload Japan shares simply because they are a risk asset. Cross boarder bond flows have been massive in the Tokyo market.
In today’s episode, MUFG Chief Japan Strategist Takahiro Sekido review JPY assets and securities flows in March and also looks ahead to triggers for April. He also shares his views on spot USDJPY, Yen rates, and Yen basis.
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