Yen at a Crossroads as Global Liquidity Dynamics Tighten

Treasury settlement activity is set to potentially drain roughly $150 billion over the next two weeks, pressuring reserve balances and dealer balance sheets. Meanwhile, Japan's LDP landslide election win clears the way for PM Takaichi's loose fiscal agenda, raising the prospect of further USD/JPY weakness past 160. Mike Kramer breaks down the liquidity mechanics, cross-currency basis swap trends, and what it all means for equity markets.