Japanese life insurance company investment plans and the outlook for Samurai bond issuance following the BoJ’s decision to continue easy monetary policy: The MUFG Global Markets Podcast

USDJPY is off the highs as the Dollar gives back a portion of recent gains. JGB yields reflect the strength of the Bank of Japan’s yield control operations as an increase in buybacks last week helped the super long sector recover. USDJPY basis has tightened on both strong demand for JGBs from foreigner investors and Japanese investor selling of foreign bonds. Amidst the market volatility in G10 rate markets and the October BoJ meeting non-event, we expect the Tokyo market to reflect a mixture of JGB flows among Japanese and foreign investors, foreign companies’ JPY Samurai bond issuance, and Japanese companies’ overseas investing activities.

In today’s episode, MUFG Chief Japan Strategist Takahiro Sekido dissects H2 FY22 Japanese life insurance company investment plans, discusses the Samurai bond market, and summarizes high points from the BoJ’s October policy meeting. He also shares his views on spot Dollar/Yen, Yen rate, and Yen basis.