#MarketRebound Update
♦️NEWS FLASH
What’s fueling today’s financial market bounce?
Here’s the main catalyst:
Bessent is heading to Japan to negotiate a potential agreement between the US and Japan.
The US confirmed today that the deal is close to being finalized.
Why this is significant:
Markets are reacting to speculation that the agreement could include:
A pause or possible cut in Japan’s interest rates
A revival of Japan’s US bond purchases
This isn’t unprecedented:
Between 2007 and 2010, Japan’s US bond holdings surged from $573B to over $1T.
Market implications:
Such a deal would ease investor anxiety over the Yen Carry Trade and Basis Trade Leverage.
All eyes are now on Japan for signs of monetary policy coordination.
