Market read

A sustained reduction in Japan's Treasury holdings signals lower overseas demand for U.S. government debt, which can influence U.S. yields and the USD leg of USD/JPY. Concurrently, anticipation of GPIF policy adjustments under Japan's expansionary fiscal stance may affect domestic JGB demand and the JPY leg, linking both stories to the USD/JPY pair. Next up: S&P/CS Composite-20 HPI n.s.a. (MoM) (May).