Credit Suisse's Woods Sees BOJ Tightening in Japan

The video discusses the surprising growth in Japan and its impact on BOJ's yield curve targeting. It debates the possibility of tightening despite inflation not meeting targets. The weakening dollar supports currency momentum in Japan. The upcoming US inflation print is crucial, as it affects yields and market volatility, with real 10-year yields expected to remain stable.

What is the main reason for revising forecasts in Japan?

• Unexpected growth to the upside

• Decline in export numbers

• Decrease in inflation rates

• Stability in the currency market

How does the weakening dollar affect Japan's currency?

• It weakens Japan's currency

• It strengthens Japan's currency

• It has no effect on Japan's currency

• It causes Japan's currency to fluctuate wildly

What is considered a key indicator of macro risk appetite?

• The VIX

• 10-year real yields

• Political stability

• Current account deficits

What could happen if the US inflation print exceeds expectations?

• Yields may come under pressure to move higher

• The dollar will strengthen significantly

• Japan's growth will slow down

• Equity markets will become stable

What is the expected behavior of real 10-year yields in the near term?

• They are likely to stay range bound

• They will decrease significantly

• They will increase sharply

• They will become highly volatile