Major Japanese companies began announcing Q2 earnings results last week. Earnings of major companies reflect the uncertainties of the COVID-19 pandemic. Japanese companies need to secure USD funding with JPY basis swaps to maintain their global business portfolios amidst uncertain business conditions. Despite all this chaos global stock and credit markets remain calm as central banks in key economies continue to buy government bonds and credit assets and supply USD funds. Will this continue?
In this episode, Takahiro Sekido, Chief Japan Strategist of Global Markets Research, MUFG Bank Tokyo discusses the increase in fiscal receipts from MoF issuance in the context of BoJ asset purchase and USD fund-supply operation announcements. He also updates his view on the Yen, JPY rates and JPY cross-currency basis.
If you are unable to see the media player above, you can also listen to the audio file using the following link on your computer or mobile device. The podcast is also published on Apple Podcasts and Spotify.
Download: Examining BoJ asset purchases and supply of Dollar funds: The MUFG Global Markets Podcast (MP3)
You can view more insights from Global Markets Research on their dedicated website. Access requires log in details.