Reconsidering USDJPY basis arbitrage in light of a more hawkish Fed and changes to the BoJ’s buying plans: The MUFG Global Markets Podcast

As of July 5, 32.5 million people have received vaccinations in Japan, with 18.3 million people fully vaccinated. Progress with vaccinations as well as the strong U.S. jobs data for June have been positives, but the ruling party performed unexpectedly in the Tokyo Assembly elections and upside for USDJPY and the Nikkei Average has been limited.

In today’s episode, MUFG Chief Japan Strategist Takahiro Sekido discusses JPY cross-asset triggers in light of recent developments as well as Japan political risk following the Tokyo Assembly elections. He also shares his views on the Dollar/Yen, Yen rates, and Yen basis.

Disclaimer: www.mufgresearch.com (PDF)