• Across the board USD weakness sends USD/JPY back down into 158 handle

• From 159.64, USD/JPY to 158.04 yesterday, Asia so far today 158.03-30 EBS

• Through base of 158.92 daily Ichimoku cloud base, 200-DMA at 158.30

• Maybe in lower range capped @158.60, 158.61 retracement high post fall

• Japanese exporter sales to continue on rallies, absorb importer demand?

• News US Treasury to double long-bond buy-backs impact large, US yields off

• Japan fiscal concerns allayed to extent too as global bonds rallied

• Narrowing trend in JGB-US Treasury rate differentials could thus continue

• As of the New York close, differential in 2s @246.7 bps, in 10s @178 bps

• Fed minutes showed hawkish bias but recent data weaker, view no Sept hike

• Wall Street up as result, Nikkei likely up too, foreign buys/ccy hedges?

• Option expiries today include 158.00-10 $1.9 bln, 159.00 $985 mln

• Related comments , , ,

• Also , on Tsy buy-backs , on US debt

• US markets , , ,

• On Fed minutes , on global bonds

• On Japan's fiscal concerns , for more click on [FXBUZ]

USD/JPY:


JGB-US Treasury 2-year interest rate differential:

(Haruya Ida is a Reuters market analyst. The views expressed are his own)