Japanese Funds Have Been Net Sellers of U.S. Bonds

The video discusses the challenges faced by Japanese investors due to the strong yen, which has led to increased hedging costs and a shift away from US Treasurys. The conversation highlights the need for guidance from Jay Powell on Fed rate hikes. Additionally, the video explores the decline of stock picking in Japan despite improvements in corporate governance and return on equity, with insights from Sean Taylor of Deutsche Asset Management.

What is the main reason Japanese investors are moving away from US Treasuries?

• High hedging costs

• Weak Japanese economy

• Low yield on Treasuries

• Strong US dollar

What are Japanese investors waiting for from the Federal Reserve?

• Improved US economic data

• A stronger yen

• Guidance on interest rate hikes

• A decrease in hedging costs

What might encourage Japanese investors to return to US Treasuries?

• A stronger US dollar

• A rise in Japanese interest rates

• A decrease in the yen's strength

• The 10-year Treasury yield crossing 3%

What has been improving in Japan's corporate sector?

• Inflation rates

• Interest rates

• Return on equity

• Export volumes

What area in Japan is seen as having potential for investment according to Sean Taylor?

• Large cap stocks

• Government bonds

• Mid and small cap space

• Real estate