US bond futures weaken, US/Japan is expected to ri

Aihuicha, October 23: U.S. bond futures weakened in early trading on Monday, indicating that yields and the dollar against the yen will face upward pressure. Some media said that Japan's ruling Liberal Democratic Party lost at least one of two special elections over the weekend, which could push the dollar above 150 against the yen in early trading. Analysts said traders could expect Japan to start verbal intervention ahead of schedule. However, as the Bank of Japan meets next week, speculators will increase foreign exchange options trading and short positions in Japanese treasury bonds in anticipation of policy changes. Nevertheless, from the overall point of view, the yield difference is still the dominant factor, which is largely conducive to dollar bulls. This suggests that the dollar will continue to rise against the yen until the Japanese authorities intervene strongly as before, or the Bank of Japan adjusts its policy to support the yen.