SMBC Nikko Securities strategist Ataru Okumura said stronger US inflation data
has lifted Fed tightening expectations and may force the BOJ to follow to avoid
yen weakness and higher bond yields. He warned Fed tightening that ignores
stricter AI regulation could risk a sharp economic slowdown. The JGB market
faces a tug of war between concerns the BOJ is lagging on inflation and flows
hedging a downturn; yields could swing sharply as focus shifts between those
risks.
