#MarketRebound NEWS FLASHđ±
Why are the major financial markets bouncing back todayâ Hereâs the key reason:
One of the MAIN drivers behind todayâs market recovery:
Bessent is heading to Japan to discuss a potential agreement between the US and Japan.
The US confirmed today that this agreement is nearing completion.
Why this matters:
Investors are anticipating that the deal could include:
Japan pausing or even cutting interest rates
Japan resuming its purchase of US bonds
This isnât far-fetched â it has precedent:
Japanâs holdings of US bonds rose from $573B in 2007 to over $1T by 2010.
What this means for markets:
A deal like this would calm investor concerns about the Yen Carry Trade and Basis Trade Leverage.
Investors are now closely watching Japan for signals of monetary policy alignm