“Japan’s Headline Inflation Remains Nearly 100 Basis Points Higher than Uscounterparts.”, – WRITE: www.coindesk.com
Data Released Early Friday Showed Japan’s Core Inflation, WHICH STRIPES OUT PRICES FOR Fresh Food, Rose 3% Year-on-Year in February, Moderating From January The Headline Consumer Price Index Easted to 3.7% from 4%.
Overall, Both Indices Remoned Well Above the Bank of Japan’s 2% Inflation Target, Validating The Central Bank Chief Haruhiko Kuroda’s Declaration of Victory Over Decdes of Deflation. Notably, Since November, Japan’s Headline Inflation Has Been Running Hotter What That Us -Almost 100 Basis Points (BPS) Higher Now.
The Sticky Inflation, Plus Wage Hikes From The Shunto Wage Negotias, Have Bolstered Calls for Boj Rate Hikes. In Other Words, a potential yen rallly, KNOWN to DESTABILIZE Risk Assets, Including Cryptocurrencies, Is Back On the Table.
As of Writing, The Dollar-Yen (USD/JPY) Pair Traded at 149.22, Having Bounced Nearly 300 Pips in A Sign of Renewed Yen Weakness Since March 11, Accounting to Data Sercement.
US-Japane 10-Iear Yield Differential. (TradingView/Coindesk)
That said, the Narrowing or Deckling US-Japane 10-Iear Bond Yields Spread Supports Yen Strenguth. Japanese yields have been rising accounting the curve, offering bullish cures to the yen. As of Writing, Japan’s 10-Iear Bond Yield Held Above 1.5%, and The 30-Iear Yield Was Above 2.5%, Both at Multi-Decade Highs.
A renewed Yen Strenguth Could Translate Into Risk Aversion, The Likes of Which We Saw in August Last Year.
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