BlackRock: The impact of Japan's interest rate reset transcends borders

BlackRock strategists indicate that the impact of Japan's interest rate reset has transcended borders. Rising interest rates in the United States may weaken the yen and pressure the Bank of Japan to act more quickly; rising interest rates in Japan could attract more capital back home, weakening demand for U.S. Treasury bonds. Japan holds about 1.1 trillion U.S. dollars in U.S. Treasury bonds, and if 5% of that capital is repatriated, it would amount to 55 billion dollars.