#jgb

The post Japanese Yen: Fiscal unease and BoJ path – MUFG appeared on BitcoinEthereumNews.com. MUFG’s Lee Hardman notes the Japanese Yen (JPY) has firmed slightly, pulling USD/JPY back from 162.18 to 161.68, as comments from Growth Strategy Minister Minoru Kiuichi attempt to calm fiscal worries. He highlights volatile long-end JGB trading, renewed concern over Japan’s multi‑year investment plans, heavy leveraged fund short Yen positioning, and expectations for a Bank of Japan (BoJ) rate hike by September supporting the Yen. Fiscal signals, JGBs and BoJ outlook “The yen has strengthened modestly overnight resulting in USD/JPY dropping back to a low of 161.68 after hitting a high of 162.18. The yen has derived some support from comments from Japan’s Growth Strategy Minister Minoru Kiuichi who stated that “there’s absolutely no truth to reports suggesting that the government is encouraging low interest rates as part of its fiscal expansion policy. If our intentions haven’t been accurately

The post Japanese Yen: Inflation curve debate shapes outlook – Rabobank appeared on BitcoinEthereumNews.com. Rabobank’s Senior FX Strategist Jane Foley discusses the Japanese Yen’s (JPY) recent strength and questions whether the Bank of Japan (BoJ) is truly behind the inflation curve. Foley highlights JGB auction strength, rising foreign ownership of Japanese debt, and BoJ inflation forecasts, while stressing that fiscal concerns and cautious rate hikes continue to limit a sustained JPY recovery. BoJ credibility and JPY performance “In August last year, US Treasury Secretary Bessent stated that the BoJ is “behind the curve on inflation” and indicated that the Japanese monetary authority would be hiking interest rates. At that time Bessent stated that there was risk of “leakage,” meaning that higher JGB yields could potentially drive up those in other bond markets including US treasuries. Moreover, since Japanese investors are the largest foreign holders of US debt, the US Treasury is l