MUFG Securities Strategist Says Rising Japanese Bond Yields Unlikely to Strengthen Yen on May 20

According to Guru Club, on May 20, Shota Ryu, strategist at MUFG Securities, said rising Japanese government bond yields are unlikely to lead to yen appreciation. The increase in bond yields stems from market concerns about Japan's fiscal health and declining confidence in the Bank of Japan's monetary policy, Ryu stated.

Ryu noted that yen depreciation could further fuel inflation expectations, pushing yields higher, and warned that if the government and central bank fail to restore credibility, selling pressure on the yen may intensify.