⚖️🇺🇸🇯🇵YCC Adjustment Shouldn't Trim USD Premium Materially: Cable FX Macro

• Earlier in the session, the Nikkei reported the BoJ will be open for an adjustment in their YCC policy, the central bank is set to allow long-term yields rising above 1.0%

• The initial price reaction was JPY positive, this took the dollar yen spot below the 149.0 level. The pair was seen extending gains above 150.0 last week before paring the upside on a UST yield retracement

• Despite the BoJ adjustment, a 10yr JGB at 1.0% would take the US-JP rate differential down to about 390bps, this will leave the dollar premium at around 2standard deviations higher from its 1-yr average of 339bps