During Golden Week, the FOMC held its May meeting while the US regional bank sector remained riddled by credit concerns. Despite all that, the lower side of the USD/JPY was solid and the rise of Yen interest rates and widening of Yen basis were limited. If investment flows from Japanese investors pick up after Golden Week as we expect, USD/JPY, Yen interest rates, and Yen basis will become more volatile.
In today's episode, MUFG Chief Japan Strategist Takahiro Sekido reviews the JSDA data for March, as well as April fiscal and BoJ fund flows and implications. He also shares his views on spot USDJPY, Yen rates, and Yen basis.
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