The Tokyo Summer Olympics have begun. As of July 25, 44.58 million vaccine shots have been administered in Japan, with 29.38 million persons now fully vaccinated. The daily rate of vaccinations has been around 787,000 shots. USDJPY dipped to the lower 109-yen level the evening of July 19 before rising to the mid 110-yen level later in the week, and 10Yr JPY swap rates stayed flat, at around 0.02%-0.03%, as did 3Mo JPY basis, at -8bps to -9bps. The Nikkei Average was up at the start of the week, boosted by the Tokyo Olympics and upturn in U.S. stocks.
In today’s episode, MUFG Chief Japan Strategist Takahiro Sekido discusses Japanese and foreign investor cross-border flows in June, as well as relative value of JPY bonds in USD terms. He also shares his views on the Dollar/Yen, Yen rates, and Yen basis.
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