Intriguing RV graphs: JGB market after September rate hike
Key points
Since formation of Takaichi Cabinet, JGB yields have risen, led by 10yr sector, amid concerns about BoJ falling behind the curve; 2s10s JGB yield spread widening
But this trend has recently reversed; expectations for accelerated rate-hiking pace emerging following coordinated US-Japan forex intervention, remarks from US Treasury Secretary Scott Bessent
Sep meeting to provide opportunity for assessing sustainability of reversed trend; focus on policy decision vote counts, tone at BoJ Governor's press conference