The State of Emergency covering some parts of Japan will likely be eased at the end of June. Not only USDJPY, but also JGBs and JPY basis will likely stay in their narrow trading ranges, covered with foreign investors’ JPY investing flows, ahead of Japanese key political events like the July Tokyo Assembly election on July 4th and the Lower House dissolution and general elections this fall.
In today’s episode, MUFG Chief Japan Strategist Takahiro Sekido discusses Japanese pension fund flows as well as Asian investor U.S. bond flows based on U.S. TIC data, while offering a preview of the June BoJ meeting. He also shares his views for Dollar/Yen, Yen rates, and Yen basis.
Version: 20240320