June 3 2026
EIDE Briefings
-Shortsighted monetary policy without security perspective collapses our economy & fiscal suicide
BoJ is expected to raise its interest rate amid continuing inflationary pressure, which is also generally thought to prevent the depreciation of Yen.
But Middle-East-originated supply chain disruption and price rise coming from higher energy prices are temporary from the lens of security studies.
Trump now rushes to make the maximum compromise to reach the ceasefire in order to curve the rise in gasoline prices amid the driving season.
He will again put an utmost pressure on Israel to stop the aggression in the region.
With the US support waning, Israel cannot continue its invasive war considering harsher international criticism, which can trigger the application of economic sanctions targeting Israel sooner or later.
https://www.nippon.com/en/in-depth/d01228/
Yield ’’Interruptus’’ in the case of US
https://paulsenperspectives.substack.com/p/yield-interruptus
In light of the security conditions, the Iran war will soon come to an end.
Truce is basically considered to terminate the dollar-buying in times of crisis, which drives JPY stronger.
It takes time for the monetary policy to take effect and expansionary fiscal measures by the Takaichi administration is detrimental to the bond market.
Steepening of the yield curve brings downward pressure on share prices.
Ongoing price pass-through cools consumer sentiment.
Interest payment by the government will also increase.
We have nothing to gain.
Related news
Ueda continues raising interest rate
https://lnkd.in/gfecDwd8
Israel under siege
https://lnkd.in/g2JUmRt7