Nuances of BoJ fixed rate buying operations and cross-border securities flows: The MUFG Global Markets Podcast

JGB rates rose last week, and the Bank of Japan offered fixed-rate JGB buying operations on February 14. USDJPY downside has been firm, and JPY basis returned to its previous level after first widening. The Nikkei Average has been soft, reflecting the slump in U.S. stock prices. The firmness of USDJPY downside and USDJPY basis volatility have been impressive. Looking ahead, we expect the BoJ yield curve control operations and cross-border investment flows to be the driver of JPY asset price action.

In today’s episode, MUFG Chief Japan Strategist Takahiro Sekido discusses the nuances of the BoJ’s fixed rate buying operation as well as the attributes of securities investing flows from last week’s Balance of Payment data. He also shares his views on the Dollar/Yen, Yen rates, and Yen basis.

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