Will Japanese investor appetite for U.S. bonds continue to grow in 2022?: The MUFG Global Markets Podcast

The end of the year is at hand. USDJPY upside has been heavy since the Omicron COVID-19 variant emerged. Overseas investors have been building up their medium- to long-term JPY bond positions, and JPY basis has been tightening. With investors awaiting the release of Japan’s FY22 budget and JGB issuance plans, JPY rates have been flat. 

In today’s episode, MUFG Chief Japan Strategist Takahiro Sekido dissects the results of the BoJ’s December meeting as well as Japan stock, JGB, and foreign bond flows in November, while looking ahead to Japanese investors’ U.S. bond flows in 2022, based on USTIC and BoP data. He also shares his views on the Dollar/Yen, Yen rates, and Yen basis. 

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