FUNDAMENTAL ANALYSIS
Comments from Fed officials this week including those from James Bullard and Neel Kashkari pushed expectations of faster monetary policy tightening even higher.
The spread between Japanese and US bond yields continue to widen due to diverging monetary policies. The benchmark 10-year US yield hovered 3-year highs above 2.8%, while the Bank of Japan has been intervening to keep the yield on 10-year Japanese government bonds around 0% and no higher than 0.25%. The latest CFTC data shows the largest net short yen positions in 3½ years.