The BoJ’s Yield Curve Control vs the MoF’s JGBs: The MUFG Global Markets Podcast

The second half of calendar year 2020 began with persistent concerns of spreading coronavirus infections across the world, not to mention a second wave in North America. That, in part, has caused a lack of upward momentum for both USDJPY and Japanese stocks. Moreover, with 10 year Treasury yields in the United States only 0.70% at best and a sell-off in the long-end of the JGB yield curve, the traditional scenario of the US-Japan yield gap driving USDJPY higher no longer holds water.

In this episode, Takahiro Sekido, Chief Japan Strategist of Global Markets Research, MUFG Bank Tokyo discusses tensions in the JGB bond market, JPY cross-currency flows, and BoJ’s monetary policy operations, as well as updates his views on the Yen, JPY rates, and JPY cross-currency basis.