The Macro Minute with Darius Dale How does the BOJ’s revised policy setting impact investors around the world?
Dec 22, 2025
The discussion highlights the Bank of Japan's policy normalization and its ripple effects on global bond markets. Darius analyzes how BOJ tightening is impacting Treasury market dynamics and fueling a bull market in gold. He also delves into the political pressures surrounding yen depreciation and examines the sell-off of Japanese Government Bonds. The episode emphasizes the importance of systemic risk management in navigating these macro shifts, reinforcing the value of educational resources for investors.
AI Snips
Chapters
Transcript
Episode notes
BOJ Tightening Fuels Global Bond Strain
- The BOJ's sustained normalization is creating a supply-demand imbalance in global Treasury markets.
- That imbalance helps power the historic bull market in gold by increasing systemic demand for safe havens.
BOJ Signals Material Room To Tighten
- The BOJ lifted its policy rate to the highest level in 30 years and signaled more hikes ahead.
- That shift reflects embedded inflation and a declared neutral rate between 1% and 2.5%, implying more tightening potential.
Persistent Inflation And Yen Risks
- The BOJ's preferred CPI measure has stayed at or above 2% for 44 months, confirming sustained inflation.
- Policymakers view yen weakness as a risk that may force further tightening to curb import-driven inflation.