U.S. Demands BOJ Accelerate Rate Hikes as Condition for Yen Intervention; September Hike Odds at 82%

U.S. Demands BOJ Accelerate Rate Hikes as Condition for Yen Intervention; September Hike Odds at 82% According to the Nikkei, the U.S. asked the BOJ to accelerate the pace of rate hikes as a condition for participating in the coordinated yen-buying intervention at the end of July. Within the BOJ, recognition is spreading that the six-month interval needs to be shortened, and with the market pricing in about an 82% chance of a rate hike at the September 17-18 meeting, Deputy Governor Ryozo Himino's speech on the 27th is the focus. 1234

Nikkei Average Falls 488 Yen to 65,528, Extending Decline on Higher U.S.-Japan Rates and Korean Stock Weakness On the Tokyo market on the 24th, the Nikkei average closed at 65,528 yen, down 488 yen from the previous weekend. AI and semiconductor stocks were sold as long-term interest rates in Japan and the U.S. rose due to higher crude oil prices, while softness in the KOSPI and sympathy selling triggered by Walmart's sharp drop also weighed on the market. Trading value on the Tokyo Stock Exchange Prime Market exceeded 7 trillion yen. 5678

SoftBank Group to Issue 1 Trillion Yen in Retail Bonds, Largest Ever with 4% Range Yield SoftBank Group will issue 1 trillion yen in 7-year bonds, with a provisional coupon range of 4.30-4.90%. This is the largest retail bond issuance by a domestic company, securing funds to refinance 400 billion yen maturing in September and to invest in its AI strategy, attracting individual investors with a yield well above the 5-year government bond yield of around 2.13%. 9

Sumitomo Metal Mining Hits Year-to-Date High on Gold and Copper Rally, Up Over 50% in One Month On the 24th, Sumitomo Metal Mining rose 6.64% from the previous day to 11,475 yen, ranking third in gainers on the Tokyo Stock Exchange Prime Market. Buying gathered on the back of rising gold and copper prices, and the stock climbed from 7,460 yen to 11,475 yen in one month. 6

Carry Trade Continues After Yen Intervention; Japanese Investors Net Buy 5 Trillion Yen in Overseas Assets After the coordinated intervention at the end of July briefly pushed the yen to 155, Japanese investors net bought more than 5 trillion yen in overseas stocks and foreign bonds over two weeks. There is a view that the intervention provided a 'cheap entry point' rather than an exit for carry trades, and with dollar-yen around 159, approaching 160 keeps intervention vigilance alive. 101112