Tokyo Cross-Currency Repo Market Structure and nuances to BoJ Monetary Policy: The MUFG Global Markets Podcast

While USDJPY and JPY rates have started to rise notably, upside for the Nikkei Average has been heavy and JPY basis has tightened. Monetary policy normalization will likely pick up in 2022 as the effects of the COVID-19 pandemic fade. Tokyo markets will not necessarily react as they have in the past, and changes could be substantial. This is because of structural changes to both Japanese and foreign investors JPY cross asset trading.

In today’s episode, MUFG Chief Japan Strategist Takahiro Sekido dissects the attributes of cross-currency JPY repo trading in Tokyo and discusses BoJ Monetary Policy. He also shares his views on the Dollar/Yen, Yen rate, and Yen basis.

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