Japan
MoF FX intervention has drawn a line at 160, triggering a sharp yen squeeze. But with near-term fundamentals still stacked against the currency, USD/JPY remains poised to retest the highs before any durable turn.
The BoJ held rates overnight, but the direction of travel hasn’t changed. We discuss how stronger wages, rising inflation, and a weak yen point to further tightening ahead.
Volatility is high, but the path for yields is clearer than it looks. Across three oil scenarios, we show how policy responses shape fixed income markets and why the balance of risks still points to lower yields.
Interest rate volatility is very low across developed market fixed income. Investors should maximize the carry in their portfolios to outperform in a low rate vol environment.
