Trade data from Japan for August 2022
Exports to:
- US +33.8% y/y
- China +13.5% y/y
- EU + 16.7% y/y
USD/JPY not responding much at all to the data.
What is notable is the yield on 10-year JGBs has risen to 0.25%, which is the upper limit of the Bank of Japan's policy cap. The Bank of Japan was in the market yesterday buying more of these maturities than they had previously said they would. The Bank won't be happy with the rising yield and are likely to buy more again today.
