Japan uses interest rate hikes in exchange for tariff concessions, even a 'mini Mar-a-Lago agreement'? Focus on next week's meeting of the finance ministers of the U.S. and Japan.

The discussion between the finance ministers of the USA and Japan next week may become a turning point for the yen Exchange Rates. Citigroup believes that if the USD/JPY Exchange Rates remain above 140, the Bank of Japan may accelerate the tightening of MMF policy under pressure from the USA. Considering the current inflation and interest rate levels in the USA, it is not yet mature to reach a "mini Mar-a-Lago agreement"; a more realistic solution is for the Japanese government to extend its MMF holdings of US Treasury bonds, contributing to a decline in US interest rates.

wallstreetcnApr 15 16:52

Japanese bonds have fallen to their lowest point since 2009! The Governor of the Bank of Japan reiterates the determination to 'reduce the balance sheet' and holds an optimistic view on salary prospects.

Kazuo Ueda stated, "From now on, we may see inflation easing driven by import costs, while wages will continue to rise steadily. Therefore, we expect real wages and Consumer spending to improve in the future." The Bank of Japan has also begun to implement an Algo tightening plan, with the monthly purchase of ​Bonds expected to be halved to 3 trillion yen by early 2026.

wallstreetcnMar 13 17:14

Policymakers' hawkish statements + inflation pressures reinforce expectations for the Bank of Japan to raise interest rates, leading to a strengthening of both Japanese bond yields and the yen.

The hawkish remarks from Bank of Japan officials and persistently high inflation are reinforcing market expectations for interest rate hikes by the Bank of Japan, pushing Japanese Bonds yields to multi-year highs.

Zhitong FinanceFeb 17 16:21

Japan's GDP has expanded for three consecutive quarters, expectations for interest rate hikes have surged, and the 10-year Japanese government bond yield reached a 15-year high at one point.

Japan's economic performance in the fourth quarter exceeded market expectations, with a quarterly annualized GDP of 2.8%, far above the general market expectation of 1.1%, leading to a strengthening of the yen. Economists expect the Bank of Japan to raise interest rates again this summer. Overnight index swaps indicate that the market believes there is over an 80% chance of the Bank of Japan raising interest rates before July.

wallstreetcnFeb 17 15:12

Consumer slowdown but the economy remains stable. Does the Bank of Japan feel confident about raising interest rates?

Japan's economic performance has exceeded expectations, with corporate spending and net trade driving growth for the third consecutive quarter, which gives hope for the Bank of Japan to continue its interest rate hike plans.

Zhitong FinanceFeb 17 11:07

After the Bank of Japan rarely indicated an interest rate hike, the market may return to uncertainty.

To avoid being led by the market and given the uncertainty in the economic outlook, the Bank of Japan may restore ambiguous policy guidance.

Golden10 DataJan 27 14:05