QE watchers - might keep an eye on the Dollar to Yen figure.
https://tradingeconomics.com/japan/currency
The current story says
The Japanese yen traded near 156 per dollar on Wednesday, following a sharp decline in the previous session after reports that Prime Minister Sanae Takaichi expressed concern over further rate hikes
That's the thing. They want negative "real" interest rates, but the market is thinking, they can't do that without printing up some Yen to buy that government debt, since they want to increase deficit spending.
They already owe more money to a printer than actual lenders.
I'm hearing that they're going to sell assets, like US treasuries to bankroll the deficits and hold off printing for now.
creating uncertainty around the pace of BOJ rate hikes even as speculation mounts that the central bank could resume policy normalization later this year.
What a load of bullshit. It's called "unconventional monetary policy" when they print. "Policy normalization" means they've stopped printing to control debt market price discovery.
"Unconventional monetary policy" is Weirmar republic economics. And there is no place where that policy is more manifest than Japan.
That Yen is a possible canary in the coal mine. I keep an eye on it.
Posted Feb 25, 2026, 5:45 AM UTC