Japanese investors’ appetites for EUR bonds and EURJPY cross-currency swaps: The MUFG Global Markets Podcast

Concerns about a second wave of the COVID-19 pandemic have seen global stock markets plummeting. With pressure on the natural resources sector, this provides opportunity for the JPY to strengthen against currencies of countries dependent on this sector. Despite Japanese investors keeping up their JPY 1 trillion per week pace of overseas medium- and long-term bond buying during June, JPY has not seen substantial weakening.

In this episode, Takahiro Sekido, Chief Japan Strategist of Global Markets Research, MUFG Bank Tokyo discusses Japanese investors' EUR bond flows and the impact on EURJPY forward and basis swaps, as well as updates of his view on the Yen, JPY rates and USDJPY cross-currency basis.