Could a small step toward post-pandemic policy normalization and tweaks to the structure of U.S. money markets start to normalize cross-currency basis?: The MUFG Global Markets Podcast

Japan remained under a state of emergency in some designated areas during the Golden Week holidays. Dollar/Yen and JPY rates have traded in narrow ranges, edging up slightly, and the Nikkei Average also lacks momentum. JPY basis has tightened considerably. Arbitrage trading among foreign investors was active as Japanese investors were on holiday. Cross-border factors are more likely to impact JPY asset volatility than domestic factors as monetary easing continues around the world.

In today’s episode, MUFG Chief Japan Strategist Takahiro Sekido reviews the Bank of Japan’s April policy meeting, discusses adjustments to the coordinated global central bank effort to supply U.S. Dollar funds, and takes listeners through relative value in cross-border security investments. He also shares his views for Dollar/Yen, Yen rate, and Yen basis.

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