Is Japanese foreign direct investing the key to foreign investor demand for JGBs?: The MUFG Global Markets Podcast

As of August 5, more than 52 million people in Japan have received COVID-19 vaccinations, and of these, nearly 40 million people are now fully vaccinated. The Tokyo Olympics drew to a close on August 8, but the Tokyo Paralympics will be held from August 24 to September 5. The Bank of Japan does not plan to meet in August. Market speculation suggests that the Fed is starting to cut back on monetary easing. JPY flow of funds in the Tokyo markets will likely determine JPY rates and USDJPY basis.

 In today’s episode, MUFG Chief Japan Strategist Takahiro Sekido dissects the BoJ’s monetary operations in July, the MoF’s outlook for JGB issuances in August/September, and USDJPY basis JGB arbitrage trading among foreigners. He also shares his views on the Dollar/Yen, Yen rates, and Yen basis.

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