#MarketRebound Update

NEWS FLASH

Why are financial markets rallying today?

A major driver:

Bessent is heading to Japan to discuss a possible US-Japan agreement — and the US just confirmed the deal is nearing completion.

Why it matters:

Investors are speculating that the agreement could involve:

Japan pausing or cutting interest rates

Japan resuming US bond purchases

There’s precedent:

Japan’s US bond holdings jumped from $573B in 2007 to over $1T by 2010.

Market Impact:

Such a deal would ease concerns around the Yen Carry Trade and Basis Trade Leverage.

All eyes are now on Japan’s next monetary policy moves.