U.S. Treasury Secretary Bessent is expected to meet Bank of Japan Governor Ueda
on Monday at the G20 finance ministers meeting. Nomura’s chief economist said
the yen dropping below 160 per dollar and 10-year JGB yields approaching 3%
could prompt Bessent to urge Tokyo to adopt prudent fiscal policy and allow
tighter monetary policy to curb risks from a weaker yen and falling bond prices.
Nomura added the Trump administration may press Tokyo more forcefully than
before—seeking assurances that Tokyo will avoid policies that hinder BOJ
tightening in exchange for coordinated currency intervention—and Tokyo could
signal readiness to cooperate with Washington on exchange-rate stability,
raising the prospect of renewed joint intervention.
