Understanding changes to JGB issuance and BoJ incentive deposit schemes: The MUFG Global Markets Podcast

2022 is now underway. The Fed is showing a hawkish policy stance even as the Omicron COVID-19 variant surges. The BoJ made its initial offers in the new climate change countermeasure operations while also announcing to extend and scale back COVID-19 countermeasure operations around the end of the year. In December, the MoF rushed to get Cabinet approval for the FY22 budget ahead of the regular Diet session. The Nikkei Average and USDJPY have dropped in early January as JPY rates have risen, but JPY basis has stayed tight.

In today’s episode, MUFG Chief Japan Strategist Takahiro Sekido dissects the key points to follow in Japanese politics, the MoF’s plans for JGB issuance, the BoJ’s monetary operations and JPY flow of funds for the first half of 2022. He also shares his views on the Dollar/Yen, Yen rates, and Yen basis. 

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