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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 Industri1 day 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

developingMarkets9h ago

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

The Bank of Japan (BOJ) has raised its target interest rate to 1.25%, the highest level since 1995, in a decisive shift from its ultra-loose monetary policy. This move is confirmed by multiple high-confidence sources and is attributed to global inflation, aligning with tightening by the US Federal Reserve and ECB. US Treasury Secretary Scott Bessent reportedly exerted pressure for this hike, adding a geopolitical dimension to the decision.

↑ escalating·5 signals·JP, US, IRScore 6.3

activeMarketsGeopolitics2h ago