Japanese and overseas investors compete for investment gold across borders as the Tokyo Olympic games come to a close: The MUFG Global Markets Podcast

The Tokyo Olympics are already more than half over. Japan’s State of Emergency has been extended and expanded through August 31, which will cover the Tokyo Paralympics. USDJPY and JPY rates are down, JPY basis has tightened, and the Nikkei Average has dropped, but JPY cross assets have traded in a narrow range. Overseas investing has dominated both JPY bonds and JPY basis. Over the near-term, we expect U.S. policy and Japan’s corporate sector overseas investing flows to hold the key to JPY rates and JPY basis. 

In today’s episode, MUFG Chief Japan Strategist Takahiro Sekido reviews JPY rates, basis and USDJPY in July and previews the same for August. He also discusses cross border flows, the U.S. Fed’s policy response impact on JGBs, and shares his views on the Dollar/Yen, Yen rates, and Yen basis.

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