Upcoming changes to BoJ yield curve control, cross-border flows, and Japan’s GDP recovery: The MUFG Global Markets Podcast

Japanese 1H corporate earnings releases have been mixed because of the COVID-19 pandemic, while investment flows among both Japanese companies and investors have been shifting in the wake of the U.S. election. Prime Minister Suga’s administration has noted the need for further economic stimulus and proposed a third supplementary budget to be combined with the FY21 budget and to span 15 months. The Jul-Sep GDP report showed a strong rebound in growth, but the forward-looking signals were decidedly mixed.

In this episode, MUFG’s Chief Japan Strategist, Takahiro Sekido, dissects the Jul-Sep GDP report and discusses its implications. He also reviews recent cross-border investment flows and shares his outlook for Dollar / Yen, Yen rate, and Dollar / Yen cross-currency basis.

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