USDJPY

December 20,

Entering vacation mode?

Yesterday’s dollar / yen felt sluggish despite one touch on the 113 yen range. Treasury bonds have been sold in anticipation of the U.S. tax reform bill within the year, and the yield of 10 – year US Treasury bond rose to around 2.47% for the first time in about two months. However, it is a strong view that such movements are merely position adjustments ahead of the end of the year and sustainability is poor. This is why the level of the dollar / yen is somewhat cheap from the viewpoint of yield on 10-year US Treasury bonds. In addition, the dollar / yen when the yield of US 10 – year bonds was at the same level two months ago was about 114 yen. If It do not show the reaction that is strong in the rise in U.S. long-term interest rate following U.S. high stock prices of the day before, it is thought that the exchange rate for the dollar entered the vacation mode in earnest.