BNP's Saywell: Fed Hikes Empower BOJ Dovishness

The video discusses Governor Kuroda's monetary policy in 2016, highlighting how external factors like the Fed's actions influenced the dollar-yen exchange rate. It explores the concept of policy divergence and its impact on markets, particularly focusing on the implications of capping the 10-year yield. The analysis also covers the spread between US Treasuries and Japanese Government Bonds (JGBs), predicting future trends and their potential effects on the foreign exchange market.

What factors contributed to the fall of the dollar yen in 2016 according to the text?

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How does the market's pricing in of Fed rate hikes affect Japanese monetary policy?

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What concerns are raised regarding the potential selling of JGBs by the governor?

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What is the significance of the spread between 10-year treasuries and JGBs as mentioned in the text?

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What are the expectations for US Treasurys and their yields in the coming years as discussed?

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