USD/JPY climbed to 158.50 this week as global inflation concerns and rising UST yields outweighed measured comments from US Treasury Secretary Bessent. Hawkish signals from BOJ members suggest a potential June rate hike, even as rising JGB yields create a feedback loop with yen weakness.
Key Takeaways
- 1.USD/JPY rose to 158.50, its highest level since April, driven by rising US yields and geopolitical tensions.
- 2.US Treasury Secretary Bessent's visit to Japan was measured, avoiding direct pressure on Japanese fiscal or monetary policy.
- 3.Global inflation concerns are intensifying, with 10y JGB yields reaching their highest levels since 1997 (2.73%).
Table of Contents
- Week in review
- Markets move after Treasury Secretary Bessent's visit to Japan
- Global yields rise as inflation concerns return
- BOJ turns more hawkish
- Forecast range
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Authors
Teppei Ino
Securities
USDJPY10-year Japanese Government Bond10-Year US Treasury BondCrude Oil
Themes
Feedback Loop: JPY Weakness & InflationBOJ Policy NormalizationUS-Japan Financial Coordination
Regions
Asia PacificNorth AmericaGlobalJapanUnited StatesChina