The US Treasury is scheduled to announce the size of its buyback of government bonds with 10-20 years remaining to maturity during tonight's New York session, with the amount expected to more than double from the previous $2 billion allocation. USD/JPY is expected to fall below the ¥153 level again.
As a key focus for European and US markets, the US Treasury is scheduled to announce a buyback of government bonds with 10-20 years remaining to maturity. The amount is reportedly expected to more than double from the previous $2 billion allocation. The announcement has drawn attention because it could alter supply and demand in the bond market.
The move is expected to affect the USD/JPY exchange rate, and some market views anticipate another dip below the ¥153 level during tonight's New York session. Expectations for a Bank of Japan rate hike and comments from fiscal authorities may also influence trading sentiment.
Meanwhile, comments from US Treasury Secretary Bessent have heightened market caution, and expectations for measures to reverse yen depreciation are at times drawing attention in overseas markets. Alongside the Treasury documents scheduled for release tonight, USD/JPY may once again test its downside.
Several other events are also scheduled for today, including the release of Mexico's consumer price index, a speech by the president of the Deutsche Bundesbank, and a US 10-year Treasury auction worth $39 billion. The market is therefore viewed as being in a phase prone to short-term volatility.