#MarketRebound The important thing here is that investors hope that the agreement will stipulate that Japan:
🚨 Stop raising interest rates and/or cut them
🚨 Japan will resume BUYING US bonds
And this is entirely possible because it has always been like this:
💦💦 The amount of US bonds held by Japan has increased from $573 billion in 2017 to over $1 trillion in 2020
🧲🧲 This will reassure investors about the YEN CARRY TRADE and about the LEVERAGE of the BASIS TRADE