JPY: A dovish Fed means slowing BoJ purchases – Nordea Markets

Sandeep Kanihama FXStreet Contributor

Analysts at Nordea Markets suggest that the Bank of Japan has cut its purchase pace in the 10-25yr segment last week again, as they had been pre-warning about for the last few months.

Key Quotes

“Dovish central banks elsewhere lead to a relatively more hawkish BoJ due to the nature of their yield-curve-control. If there is no upside pressure on bond yields globally, then BoJ will have to buy fewer bonds to keep the yield-curve in control.”

“We ultimately see this is a JPY positive risk, why we stay long JPY versus USD via our debt ceiling basket.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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