Dollar/Yen has rebounded from the lows while super long term JGBs have been volatile. The front end of the USDJPY basis curve continues to tighten while the long end has widened. The Kishida Administration has announced tax hikes and a bigger defense budget, which could increase volatility in the JGB market. Japanese investors also face challenges with managing their JGB and USDJPY positions ahead of year-end.
In today’s episode, MUFG Chief Japan Strategist Takahiro Sekido reviews Japanese lifers first half fiscal year 2022 earnings and connects them to October securities flow data. He also shares his views on spot Dollar/Yen, Yen rate, and Yen basis.
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