Japanese Bond Yields Unlikely to Boost Yen, Says Strategist

Japanese bond yields are rising, but this is unlikely to lead to yen appreciation, according to Shota Ryu, a strategist at Mitsubishi UFJ Morgan Stanley Securities. According to Jin10, Ryu attributes the yield increase to concerns over Japan's fiscal health and declining trust in the Bank of Japan's monetary policy. He noted that yen depreciation could further fuel inflation expectations, potentially causing yields to rise even more. Ryu added that without efforts from the government and the Bank of Japan to restore credibility, the pressure to sell the yen could intensify.