#MarketRebound
Hey folks! 👀📈 The financial markets are in a state of recovery today, and the main reason? 💪💥
Japan is on the radar! U.S. Treasury Secretary "Yellen" is on his way to Tokyo to discuss a potential agreement between the United States and Japan. 🤝🇯🇵
Most importantly, investors are optimistic that this agreement may include:
* A potential halt or reduction in interest rate hikes in Japan. 🛑📉
* Japan's return to purchasing U.S. Treasury bonds. 💰🇺🇸
And this is nothing new! Historically, Japan's holdings of U.S. bonds increased from $573 billion in 2007 to over a trillion dollars in 2010! 🤯💸
This move would alleviate investors' concerns about the "carry trade" with the Japanese yen and the leverage in the "basis trade". 😌✨