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The yen has dropped to its lowest level against the dollar in three months, raising concerns about potential intervention by Japanese officials to support the currency. The weakening yen is attributed to a stronger dollar, increased US yields, and speculation about post-election inflationary policies. Analysts predict further yen depreciation, with potential interest rate hikes by the Bank of Japan and intervention if the yen continues to weaken. The currency's decline has also impacted Japan's bond market, with yields rising to their highest levels since 2008. [Extracted from the article]

The yen has dropped to its lowest level against the dollar in three months, raising concerns about potential intervention by Japanese officials to support the currency. The weakening yen is attributed to a stronger dollar, driven by increased US yields and speculation about post-election policies. Analysts predict further yen depreciation and potential intervention by authorities if the trend continues, with implications for Japan's macroeconomic conditions and monetary policy. The currency market is closely watched ahead of the US election and Federal Reserve decisions, with implications for global financial conditions. [Extracted from the article]

The yen has dropped to its lowest level against the dollar in three months, sparking concerns about potential intervention by Japanese officials to support the currency. The weakening yen is attributed to a stronger dollar, driven by increased US yields and speculation about post-election policies. Analysts predict further yen depreciation and potential intervention if the trend continues, with implications for Japanese monetary policy and bond yields. All G10 currencies have fallen against the dollar in anticipation of the US election and slower Fed policy easing. [Extracted from the article]

The yen has dropped to its lowest level against the dollar in nearly three months, sparking concerns that Japanese officials may intervene to support their currency. This decline is attributed to a stronger dollar, driven by increased US yields and speculation about post-election policies. Analysts predict further weakening of the yen, potentially leading to intervention by authorities and a possible interest rate hike by the Bank of Japan. The situation is closely tied to the outcome of Japan's upcoming general elections and the impact of the US presidential election on global markets. [Extracted from the article]

The yen has weakened to a near three-month low against the dollar, breaching a key technical level and sparking concerns that Japanese officials may intervene to support the currency. This decline is attributed to a rise in US yields and speculation about post-election inflationary policies. Analysts predict further weakening of the yen and strengthening of the dollar, with authorities potentially stepping in to curb the depreciation. US long-term yields are expected to remain high until the impact of the presidential election subsides. [Extracted from the article]

The yen has weakened to near three-month lows against the dollar, prompting concerns that Japanese officials may intervene to support their currency. This drop is attributed to a surge in global yields, US election risks, and the Federal Reserve's cautious stance on interest rates. Rising US yields have widened the gap with Japan, making American assets more attractive to yen-based investors and putting upward pressure on the dollar. The upcoming US presidential election and Japan's own lower house election are contributing to market volatility and uncertainty. [Extracted from the article]

The yen has weakened to near three-month lows against the dollar, prompting concerns that Japanese officials may intervene to support their currency. This drop is attributed to global yield surges, Federal Reserve caution on interest rates, and speculation about post-election US policies. Analysts predict further yen depreciation and dollar strengthening, with potential intervention by Japanese authorities to curb the yen's decline. US long-term yields remain high, indicating ongoing dollar strength until post-election uncertainties subside. [Extracted from the article]

A Bloomberg News analysis reveals that yen selling against the dollar intensifies when North America-based traders are active, with US Treasuries being sold and Federal Reserve officials cautioning on rate cuts. The dollar's strength is expected to continue, potentially pushing the yen lower towards its 200-day moving average of 151.36. US factors, such as data releases and Fed comments, are driving the dollar-yen pair, with the possibility of further weakening if US yields rise and market expectations of a soft landing for the US economy persist. [Extracted from the article]

Yen selling against the dollar intensifies during North American trading hours, driven by US Treasuries being sold and caution from Federal Reserve officials on rate cuts. The dollar-yen pair may rise further if it surpasses the 200-day moving average of 151.36, but could face resistance if it fails to break through. Factors such as US economic data, Fed comments, and the upcoming US elections contribute to the currency pair's movements, with the yen weakening to 151.10 on Tuesday. The Japanese lower house election on Oct. 27 adds to uncertainty, potentially impacting the yen's volatility. [Extracted from the article]

The article from Bloomberg.com discusses how yen selling against the dollar intensifies during North American trading hours, driven by factors such as US Treasuries being sold and caution from Federal Reserve officials on rate cuts. The dollar-yen pair has strengthened past key levels due to robust US economic data, with the yen facing more selling pressure during North American trading hours. Uncertainty surrounding Japan's lower house election and speculation on US interest rate cuts contribute to the volatility of the yen. [Extracted from the article]

Alimentation Couche-Tard's bid to acquire Seven & i Holdings Co., a Japanese company, is facing challenges due to the rapid appreciation of the yen. The stronger yen makes the acquisition more expensive for the Canadian convenience store operator and could potentially lead to Seven & i defending itself by proposing a reverse takeover of Couche-Tard. The rising yen also increases the potential price tag of the deal. Funding the acquisition in yen to avoid exchange rate fluctuations would be difficult, and Couche-Tard may face resistance from Japanese banks. [Extracted from the article]

Alimentation Couche-Tard Inc.'s bid to acquire Japan's Seven & i Holdings Co. is facing challenges due to the rapid appreciation of the yen. The Canadian convenience store operator's proposed buyout, which would be the largest-ever foreign acquisition of a Japanese company, is already facing funding concerns and the target company's efforts to seek government protection. The yen's surge of about 11% in the past month is expected to continue, making Seven & i more expensive for Couche-Tard. The rising yen could potentially lead to Seven & i making a reverse takeover offer to defend itself. [Extracted from the article]

Alimentation Couche-Tard's bid to acquire Seven & i Holdings Co., a Japanese company, is facing challenges due to the rapid appreciation of the yen. The yen's surge of about 11% in the past month makes the acquisition more expensive for the Canadian convenience store operator. The rising yen could potentially give Seven & i the option to defend itself by making a reverse takeover offer. Couche-Tard has not provided terms or a price for the proposed buyout, but analysts estimate a potential takeover price of about ¥9.8 trillion. The strong yen may be a significant hurdle to closing the deal, and funding the acquisition in yen to avoid exchange rate fluctuations would be difficult. [Extracted from the article]

Alimentation Couche-Tard Inc.'s proposed takeover of Seven & i Holdings Co., a Japanese company, is facing challenges due to the rapid appreciation of the yen. The Canadian convenience store operator's buyout already faces questions regarding funding and the target's efforts to seek government protection. The yen's surge of about 11% since July makes Seven & i increasingly expensive for Couche-Tard, and there is speculation that the rising currency could prompt Seven & i to make a reverse takeover offer. The actual acquisition cost will be crucial in determining the investment recovery time. Funding the acquisition in yen to avoid exchange rate fluctuations would be difficult, and Seven & i may leverage its relationships with Japanese lenders to discourage financing from Japanese banks. [Extracted from the article]

Pimco Japan Ltd., a unit of Pacific Investment Management Co., predicts that the Bank of Japan (BOJ) will raise interest rates as early as January. They are prepared to invest in long-term government bonds, which have become more attractive due to rising yields. The BOJ's approach to normalizing monetary policy remains unchanged, and recent inflation data supports the case for policy normalization. However, the supply-demand balance for long-term bonds is deteriorating, and volatility is expected to remain higher than before the BOJ began policy normalization. [Extracted from the article]

Pimco Japan Ltd. predicts that the Bank of Japan (BOJ) will raise interest rates in January and is prepared to invest in long-term government bonds. The BOJ's approach to normalizing monetary policy remains unchanged despite geopolitical uncertainties and financial market instability. The supply-demand balance for long-term bonds is deteriorating due to weak investment and the BOJ's reduction of bond purchases. However, there may be improvement in about six months and an increase in demand could stabilize the bond market. Volatility is expected to remain higher than before the BOJ started policy normalization, but Pimco sees this as an opportunity for active managers. [Extracted from the article]

Traders in the swaps market have significantly reduced their bets on the Bank of Japan (BOJ) raising interest rates again this year. The probability of a quarter-point hike by the BOJ's December meeting has dropped to around 30%, compared to over 60% a week earlier. The yield on two-year government bonds has also decreased from 0.46% to 0.27%. BOJ Deputy Governor Shinichi Uchida's recent comments suggest that policymakers will avoid raising rates during periods of market instability. If financial markets stabilize, the BOJ may consider another rate hike in December, although the impact on the yen could complicate their decision-making process. [Extracted from the article]

The yen weakened beyond 155 per dollar as the Bank of Japan began a two-day policy meeting. Traders are considering the possibility of the BOJ raising interest rates in addition to reducing bond purchases. Yields on Japanese government bonds fell, and overnight-indexed swaps indicate a decreased chance of an interest-rate increase. The yen's recent rebound, which started with suspected Japanese intervention and was amplified by hedge funds, has had global market effects due to its connection to leveraged investments. The decline in the yen has also affected currency options worth $3.4 billion that are expiring soon. The 10-year yield differential between Japan and the US has decreased, but the wide interest-rate spread between the two countries is expected to continue supporting the dollar-yen exchange rate. [Extracted from the article]

The Bank of Japan (BOJ) is planning to cut its bond purchases, with a focus on seven- to 10-year notes, according to data on the BOJ's debt portfolio. The majority of the BOJ's holdings are in tenors of 10 years and shorter, while the share of debt maturing in more than 10 years is smaller. The BOJ is expected to decrease purchases of five- to 10-year notes due to large purchases of these tenors relative to issuance. The central bank's policy meeting is underway, and economists predict a halving of monthly debt buying to ¥3 trillion ($19.5 billion) in two years. There are signs of nervousness in the bond market, with low ten-year swap spreads and increased volatility in 10-year note futures. The BOJ's planned decrease in bond buying is likely to focus on tenors of 10 years and less, while avoiding super-long bonds to prevent market participants from becoming more anxious about supply and demand. [Extracted from the article]

The Bank of Japan (BOJ) is planning to cut its bond purchases, with a focus on seven- to 10-year notes, according to data on the BOJ's debt portfolio. The majority of the BOJ's holdings are in tenors of 10 years and shorter, while the share of debt maturing in more than 10 years is smaller. The BOJ is expected to reduce purchases of five- to 10-year notes due to large purchases of these tenors relative to issuance. The central bank's policy meeting is currently underway, and economists predict a halving of monthly debt buying to ¥3 trillion ($19.5 billion) in two years. There are signs of nervousness in the bond market, with low ten-year swap spreads and increased volatility in 10-year note futures. The BOJ's planned decrease in bond buying is likely to focus on tenors of 10 years and less, while avoiding super-long bonds to prevent market participants from becoming more anxious about supply and demand. [Extracted from the article]

Japan likely intervened in the currency markets to support the yen after US inflation figures were released, according to a Bloomberg analysis. The intervention was estimated to be around ¥3.5 trillion ($22 billion) based on central bank accounts and money broker forecasts. This is the first time Japan has intervened to boost the yen when it was strengthening against the dollar. The intervention was unexpected and aimed to show that Japan has various ways to intervene in the market. The impact of the intervention on the Bank of Japan's policy decision is uncertain, with some economists suggesting it makes a rate hike more likely and others saying it makes it less likely. [Extracted from the article]

Japan likely intervened in the currency markets to support the yen after US inflation data was released. The estimated scale of intervention was around ¥3.5 trillion, based on a comparison of Bank of Japan accounts and money broker forecasts. This intervention is significant because it is the first time Japan has tried to boost the yen when it was strengthening against the dollar. The yen has weakened by more than 11% this year, making it the biggest loser among major currencies. The impact of this intervention on the Bank of Japan's policy decision is uncertain, with some economists suggesting it could make a rate hike more likely and others saying it could make it less likely. [Extracted from the article]

Thursday's sharp rally of the yen, suspected to be due to Japanese intervention, may ease pressure on the Bank of Japan (BOJ) to tighten monetary policy aggressively. Analysts suggest that if the BOJ were to raise interest rates and reduce bond purchases, it may be seen as a response to the volatile yen rather than its mandate to stabilize prices. The yen was also boosted by slower-than-expected US inflation data, supporting the case for Federal Reserve rate cuts and a weaker dollar. However, some experts believe that the BOJ may still raise rates on July 31, while others argue that the BOJ would want to avoid rushing policy moves. [Extracted from the article]

Institutional investors are set to weigh in on the Bank of Japan's bond buying debate, following calls from the nation's megabanks for significant cuts to purchases. These calls have the potential to impact bond market sentiment and increase yields. While some major banks have recommended sharp reductions or eventual reductions to monthly purchases, the central bank itself has not provided a specific plan for reducing its bond purchases. The Bank of Japan will unveil its plans for reducing purchases on July 31st. [Extracted from the article]

Japan's largest banks have called on the Bank of Japan (BOJ) to make significant cuts to its monthly bond purchases, according to attendees of market hearings. One megabank suggested early and sharp cuts, while another recommended reducing monthly purchases to ¥1 trillion ($6.2 billion). A third megabank proposed halving the current monthly level to ¥3 trillion yen. Regional banks were more cautious in their views. The BOJ has not yet presented a specific plan for reducing its bond purchases. The central bank is holding meetings to gather market participants' views as it prepares to unveil its plans for the next one to two years on July 31. [Extracted from the article]

The yen is experiencing increased volatility, with the currency at its lowest point since 1986, leading to concerns about potential Japanese intervention. Volatility spreads indicate that investors are seeking protection against sudden movements, and there is a growing number of bearish yen wagers. Japanese authorities have issued warnings, but it is unlikely to prevent further weakening of the yen, potentially prompting intervention. Charts show that implied volatility in the yen is higher compared to other currencies, hedge funds and asset managers hold significant bearish yen wagers, and active trader positioning is at its most negative since 2022. The effects of previous intervention have worn off, and individual investors are looking for opportunities to sell the yen if it strengthens after another round of intervention. [Extracted from the article]

Pacific Investment Management Co. (Pimco) predicts that the Bank of Japan (BOJ) will raise interest rates twice more this year, which will increase returns on Japanese government bonds (JGBs). Pimco expects the policy rate to reach 0.25% in July or September, 0.5% in December or January, and 1% by 2025. Pimco's co-head of Japan and Asia-Pacific portfolio management, Tomoya Masanao, believes that these rate hikes will make JGBs more attractive to investors and create opportunities for active managers. Masanao also highlights inefficiencies in Japan's bond market, such as fragmentation and the BOJ's large holdings of JGBs. The BOJ is expected to announce a reduction in its JGB purchases at its upcoming monetary policy meeting. Masanao also suggests that the BOJ will need to consider the impact of exchange rates on its monetary policy in the future. [Extracted from the article]

Japanese government bonds (JGBs) have become the worst-performing sovereign debt in Asia-Pacific due to concerns about the Bank of Japan's (BOJ) unpredictable monetary policy. JGBs have lost about 3% this year, surpassing Singapore as the region's sharpest declining bonds. The policy guidelines of central banks in Australia and New Zealand, on the other hand, are seen as clear, leading to positive returns on their government bonds. The lack of predictability in the BOJ's policy has increased volatility and made it difficult for foreign investors to keep up. If the BOJ's guidelines continue to lack specificity, JGBs may be avoided by overseas investors and debt yields may rise further. [Extracted from the article]

Japan's finance minister, Shunichi Suzuki, has defended the government's intervention in the currency market, stating that it had a certain effect in countering excessive foreign exchange (FX) moves driven by speculation. The ministry disclosed that Japan spent ¥9.8 trillion ($62.7 billion) to support the yen between April 26 and May 29. However, the yen remains stronger than before the interventions, and officials have not revealed the exact timing. Experts have differing opinions on the effectiveness of the intervention, with some suggesting that it prevented further weakening of the yen, while others question its sustainability and ability to change fundamentals. [Extracted from the article]

The yen has rebounded after weakening to a level that prompted suspected intervention by Japan to support the currency. The yen's weakness is due to the wide gap in yields between Japan and other major economies, which has led investors to seek higher returns elsewhere. Despite rising Japanese bond yields, pressure on the yen has not diminished. The yen has also depreciated against European currencies and is near its lowest level since 2008 against the pound. Japanese authorities have not confirmed whether they intervened in the currency market, and there may be pushback from trading partners if they do. US Treasury Secretary Janet Yellen has stated that currency intervention should be used sparingly and with fair warning. The market expects a rate hike by the Bank of Japan in July. [Extracted from the article]

The yen has fallen to a four-week low against the dollar, prompting suspected intervention by Japan to support the currency. However, the impact of intervening in the market has been limited. The weakness of the yen is due to the wide gap in yields between Japan and other major economies, which has led investors to seek higher returns elsewhere. The sustained weakness of the yen is expected to continue unless there are significant changes in interest rates by the Federal Reserve or the Bank of Japan. [Extracted from the article]

The yen has fallen below a key level, prompting suspicions of intervention by Japan to support the currency. However, the impact of intervening in the market appears to be limited. Japanese authorities may have purchased around ¥3.5 trillion ($22 billion) of the currency, but they have not confirmed this. The rate of change in the yen has slowed compared to a month ago, and Japan needs to consider the potential backlash from its trading partners. US Treasury Secretary Janet Yellen has emphasized that currency intervention should be rare and that fair warning should be given. It may be difficult for Japan to intervene now, given recent remarks from Yellen and the strengthening of currencies with higher yields. [Extracted from the article]

Japan's 10-year sovereign bond yield has reached 1% for the first time since the Bank of Japan implemented stimulus measures in 2013. Analysts predict that yields may continue to rise as the central bank considers dialing back its super-easy monetary policy. The yield on benchmark bonds rose to the highest level since May 2013, and there is speculation that the Bank of Japan may raise rates again to prevent further declines in the yen. The next policy meeting is scheduled for June 13-14. [Extracted from the article]

The yen has weakened due to calls from the US for caution on intervention, as well as expectations of continued pressure on the currency due to a wide yield gap between the US and Japan. Some market participants are predicting a slide back to 160 yen per dollar after Treasury Secretary Janet Yellen reiterated that interventions will be rare and consultation will take place. While Japan's top currency official declined to comment on Yellen's remarks, he stated that it is desirable for currency markets to move in line with fundamentals. Analysts expect the yen to weaken further towards 160 yen per dollar due to the yield gap and trade deficits. The Bank of Japan is closely monitoring the impact of the weak yen on prices, and there is speculation about the sustainability of Japan's yen buying. Japan's reliance on energy imports and the potential rise in crude oil prices could also negatively affect the yen. [Extracted from the article]

The yen has weakened due to US calls for caution on intervention and expectations of continued pressure on the currency. Some market participants predict a slide back to 160 yen per dollar after Treasury Secretary Janet Yellen reiterated that interventions will be rare. Japan's top currency official stated that government intervention is only necessary if currency moves are disorderly. Analysts expect the yen to weaken further due to the yield gap and trade deficits. Japan's reliance on energy imports and potential rise in crude oil prices may also negatively impact the yen. [Extracted from the article]

Japan likely conducted its second currency intervention this week, spending around ¥3.5 trillion ($22.5 billion) to prop up the yen. The move came shortly after a Federal Reserve meeting, indicating an increasingly aggressive stance by Japan's finance ministry. The yen's sharp swing follows a sudden jump on Monday, which was also likely an intervention worth around ¥5.5 trillion. The official figures for the size of intervention will be released on May 31. [Extracted from the article]

According to a Bloomberg analysis of central bank accounts, Japan likely conducted its second currency intervention this week in an effort to prop up the yen. The Bank of Japan reported that its current account will likely fall by ¥4.36 trillion due to fiscal factors, suggesting that an intervention of about ¥3.5 trillion took place. This move by Japan's currency authorities occurred shortly after a Federal Reserve meeting, indicating an increasingly aggressive stance in supporting the yen. The precise figure of the intervention will be revealed at the end of the month. [Extracted from the article]

Japan likely conducted its second currency intervention this week, spending around ¥3.5 trillion ($22.5 billion) to prop up the yen. The move came shortly after a Federal Reserve meeting, indicating an increasingly aggressive stance by Japan's finance ministry. The yen's sharp swing follows a sudden jump on Monday, which was also likely an intervention worth around ¥5.5 trillion. The official figures for the size of intervention will be released on May 31. [Extracted from the article]

The Bank of Japan's data release on May 7th will provide insight into whether the government intervened in the currency market to bolster the yen. Prior to suspected intervention, private money brokers predicted a decrease in the current account balance due to fiscal factors. If the BOJ's forecast shows a significantly larger decrease, it could indicate government intervention. The yen experienced a 3% surge in New York, leading to speculation of intervention. The top currency official, Masato Kanda, declined to comment on whether authorities intervened. [Extracted from the article]

Japan's recent suspected currency intervention has raised questions about the effectiveness of such measures in propping up the yen. Despite spending ¥5 trillion in a market with little trading activity, the yen only increased slightly before quickly recovering. This is in contrast to a previous intervention in 2022, where the yen appreciated significantly. The yen's recent rebound and the expectation of higher interest rates in the US are adding to the risk of further yen depreciation. While a weak yen benefits Japanese exporters, there are concerns about the negative impact on earnings and real wages. [Extracted from the article]

According to a Bloomberg analysis of central bank accounts, Japan likely intervened in the currency market on Monday to support the yen. The Bank of Japan reported that its current account will likely fall by ¥7.56 trillion ($48.2 billion) due to fiscal factors, suggesting that intervention of about ¥5.5 trillion took place. The Ministry of Finance has not confirmed whether there was intervention, indicating a preference to keep traders guessing. Analysts estimate that the intervention was around the same size as the largest move in 2022, but warn that future interventions may be less effective if the market becomes less wary. [Extracted from the article]

According to an analysis of central bank accounts, Japan likely intervened in the currency market on Monday to support the yen. The Bank of Japan (BOJ) reported a projected decrease in its current account balance that was significantly larger than private money brokers' estimates, suggesting intervention of about ¥5.5 trillion took place. The yen had rapidly depreciated to beyond 160 per dollar on Monday, prompting speculation of intervention. However, the Ministry of Finance has not confirmed whether intervention occurred. [Extracted from the article]

The Bank of Japan is expected to release data that may shed light on whether the government intervened in the currency market after the yen's sharp decline. The central bank will provide forecasts for its current account balance, and if these predictions show a larger decrease than anticipated, it could indicate intervention. Analysts suggest that if the shortage of yen exceeds forecasts, it would confirm intervention. While Japan's top currency official did not confirm intervention, he stated that excessive currency moves driven by speculation would negatively impact the economy, and appropriate action would be taken. The yen rebounded from its weakest level in 34 years on Monday, leading to speculation of intervention. [Extracted from the article]

Traders are anticipating further declines in the value of the yen, with some predicting it could reach 160 against the dollar. The recent weakening of the yen has been attributed to fears of higher US borrowing costs and a rush to the dollar. While the Japanese Finance Minister has not issued a direct warning, he has stated that authorities are prepared to take action if necessary. However, even official intervention may not be able to halt the yen's decline, as it is heavily influenced by the interest rate differential between Japan and the US. Traders are closely monitoring the situation and expect intervention if the yen exceeds 155 against the dollar. [Extracted from the article]

Traders are preparing for the possibility of the yen falling to 160 against the dollar, despite the potential for intervention by Japanese authorities. The yen has already reached a 34-year low against the dollar, and recent market movements suggest that these levels may be reached sooner than expected. While Finance Minister Shunichi Suzuki has not issued a direct warning, he has stated that authorities will be ready to take action if necessary. However, even official intervention may not be able to stop the yen's decline, as it is heavily influenced by the interest rate differential between Japan and the US. Traders are closely monitoring the situation and believe that further weakening of the yen is likely. [Extracted from the article]

Traders are anticipating further declines in the value of the yen, with some predicting it could reach 160 against the dollar. The recent weakening of the yen has been attributed to fears of higher US borrowing costs and a stampede to the dollar. Even official intervention may not be able to stop the yen's decline, as it is heavily influenced by the interest rate differential between Japan and the US. The Ministry of Finance in Japan may wait for increased market volatility before considering intervention. [Extracted from the article]

Investors are increasingly betting against the yen, with net yen shorts reaching their highest level in 17 years. This comes as the yen approaches a key level that could trigger intervention from Japan. Despite warnings from officials, investors believe the yen has further room to weaken due to the interest-rate gap between Japan and the US. The Bank of Japan's rate hike has had little impact on the yen, which is near a 34-year low. The currency's weakness has raised concerns among officials, who have pledged to take action against excessive moves. US inflation data could potentially trigger sharp movements in the yen, depending on the strength of price growth. [Extracted from the article]

Japanese authorities are considering intervening in foreign exchange markets to target a five-yen rally against the dollar, according to strategists at major brokerages. The yen has reached its weakest level against the dollar in about 34 years, prompting concerns. However, there is skepticism about whether intervention can keep the yen strong for long, given the wide yield gap between US and Japanese bonds. Japan's Finance Ministry may need to prop up the yen if it continues to weaken. [Extracted from the article]

Japanese authorities are considering intervening in foreign exchange markets to target a five-yen rally against the dollar, according to strategists at major brokerages. The yen has reached its weakest level against the dollar in 34 years, prompting concerns. However, skepticism remains about the effectiveness of intervention in keeping the yen strong, given the wide yield gap between US and Japanese bonds. Japan's Finance Ministry may need to prop up the yen if it continues to weaken. [Extracted from the article]

The Bank of Japan's potential exit from its negative interest rate regime could lead to a significant increase in short-term borrowing costs, affecting the nation's bond-yield curve. Experts warn that the market may not be prepared for a rate hike that could occur as early as next week, and this could result in higher rates for longer maturity debt as well. Rapid changes in the debt market could also impact currency and equity markets, causing potential turmoil. Strategists are particularly concerned about repurchase rates, which have not adequately accounted for a looming rate hike. The repo rate, currently at -0.1%, could rise to about 0.1%, causing the two-year yield to spike. Some experts suggest that the Bank of Japan may change its target rate back to the Tokyo overnight average rate. The convergence or reversal of these rates could occur if the negative rate policy is abandoned. Repo rates are currently below the Tokyo overnight average rate due to global funds avoiding sub-zero interest rates at central bank accounts. [Extracted from the article]