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Bessent bets on BoJ hike to validate US rate-dampening purchases

US Treasury Secretary Scott Bessent is reportedly counting on the Bank of Japan to raise rates on Friday, following the Fed's hike on Wednesday, to support his efforts to dampen long-end US yields. If the BoJ disappoints, his bond purchases may prove ineffective. This cross-market dependency highlights the fragility of US yield management amid global monetary divergence.

Dagens Industriabout 14 hours agoUS, JPCredibility 26%View source

Score Breakdown

Mosaic Score6.4

Confidence0.3

Significance0.8

Source credibility0.3

Intelligence Tags

#monetary policy #bond yields #bank of japan #federal reserve #treasury secretary

Entities

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Source

Part of 2 situations

developingMarkets4h ago

BOJ Raises Rates to 1.25%, Highest Since 1995 Amid US Pressure

The Bank of Japan (BOJ) has raised its policy rate by 25 basis points to 1.25%, marking the highest level since 1995. This move follows a US Federal Reserve rate increase and an unusual public campaign by US Treasury Secretary Scott Bessent urging tighter monetary policy in Japan. The BOJ's action signals continued normalization, with high confidence in the confirmed rate hike.

↑ escalating·4 signals·JP, USScore 5.7

activeMarketsGeopolitics2h ago