#MarketRebound NEWS FLASH

Markets are rebounding — but why?

One of the main reasons behind today’s market bounce:

Bessent is heading to Japan to discuss a potential US-Japan agreement — and the US just confirmed the deal is close to being finalized.

Why this matters:

Investors are hopeful the agreement could lead to:

Japan pausing or cutting interest rates

Japan resuming its purchase of US bonds

This wouldn't be unprecedented — Japan's US bond holdings jumped from $573B in 2007 to over $1T by 2010.

What it means for markets:

Such a deal could ease investor concerns around the Yen Carry Trade and leveraged basis trades.

Now, all eyes are on Japan for any signs of monetary policy alignment.