The yen has fully factored in first and second round's supplementary budget and the establishment of a recovery fund in Europe. Position rewinding has weakened JPY, but we do not expect a trend toward more JPY selling positions. We expect Japanese investors to borrow USD early, ahead of the end of the month. Yet, for now USD funds are supplying operation for responding to the COVID-19 pandemic.

In this episode Takahiro Sekido, Chief Japan Strategist of Global Markets Research, MUFG Bank Tokyo discusses recent JPY cross-border flows' impact on the BoJ's YCC operations and JGB markets with his view on the Yen, JPY rates and USDJPY basis.

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Download: JPY cross-border flows mitigated COVID-19 crisis stress for policy makers – The MUFG Global Markets Podcast (MP3)

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