Japanese and foreign bond flows at the close of 2021: The MUFG Global Markets Podcast

Since the beginning of 2022, expectations that the Fed will accelerate its rate hikes have strengthened. It is unclear whether the BoJ and the ECB will keep pace with the Fed. However, changes in policy trends with a view to the post-COVID-19 era are almost certain. Last week, Dollar/Yen and the Nikkei Average fell as risk-averse investment flows strengthened and the JPY basis tightened, while JGB yields only fell slightly. The reaction across assets suggests that the structure of the Tokyo market is steadily changing.

In today’s episode, MUFG Chief Japan Strategist Takahiro Sekido dissects investor activity across JGBs, Nikkei stocks, and foreign bonds in December, as well as additional insights from the November U.S. TIC data. He also shares his views on the Dollar/Yen, Yen rates, and Yen basis.

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