Name: Bessent Pushes, BOJ Splinters Over Rate Hike
Uploaded: 2026-09-18T07:02:00+00:00
Duration: 2760 s

Speakers

Shery Ahn — Anchor, Bloomberg Television

Avril Hong — Reporter, Bloomberg Markets

Peiqian Liu — Asia Economist, Fidelity International

Jon Gray — President & COO, Blackstone

Steven Chu — FX Strategist

Jahangir Aziz — Head of Asia Economics, JP Morgan

P R Sanjai — Senior Reporter for Conglomerates, Bloomberg

Summary

The Bank of Japan raised rates to 1.25% but a 7-2 split vote and dovish dissents left markets questioning the pace of further tightening. The yen weakened and JGBs remained under pressure, while Japanese bank stocks faced doubts. Guests discussed BOJ terminal rates, yen intervention risk, Indian real estate and REIT opportunities, RBI rate hikes, and Tata Sons' listing plans.

BOJ hikes to 1.25% with two dissents, yen weakens past 157.
JGB market pressured by fiscal supply and BOJ purchase reductions.
Fidelity economist sees BOJ normalization continuing but yen weak unless policy credibility improves.
Blackstone president bullish on India real estate and REIT market growth.
Strategist sees USD/JPY drifting toward 160 and JGB curve steepening.
JPMorgan sees BOJ terminal rate at 2%, USD/JPY range 155-165.
JPMorgan expects RBI to hike at least once; India growth may be sugar high.
Tata Sons will pursue listing and chairman extension amid family opposition.

Ideas

Shery Ahn Anchor, Bloomberg Television 4:41

Fiscal supply, BOJ pullback weigh on JGBs.

Japan government bonds are vulnerable because fiscal spending is rising, the BOJ is scaling back its JGB purchases by the largest amount since the 1990s, and a dominant buyer is stepping away from the market, leaving more supply to be absorbed by private investors.

Avril Hong Reporter, Bloomberg Markets 8:30

BOJ hike doubts undercut Japanese banks.

Japanese bank stocks have rallied massively on expectations of BOJ tightening, but the split BOJ vote and dovish dissents reduce confidence that the BOJ will deliver further hikes to support that rally, making the risk/reward less attractive.

Peiqian Liu Asia Economist, Fidelity International 17:17

Yen stays weak without policy credibility.

The yen is likely to remain weak and test its weak end unless the BOJ provides clearer hawkish forward guidance, the government improves fiscal credibility, and domestic capital allocation flows change; intervention only buys time and does not alter the underlying rate and flow dynamics.

Jon Gray President & COO, Blackstone 19:31

India real estate and REITs grow.

India's deep talent pool and the need for global companies to house employees at scale create demand for large, high-quality office parks with supporting infrastructure, and the government's REIT legislation has improved access to capital, lowered the cost of capital, and allowed Blackstone to take real estate companies public; the Indian REIT market should grow as more public investors allocate capital there.

Steven Chu FX Strategist 24:55

BOJ dovishness steepens JGB curve.

The BOJ's split vote and dovish outcome may delay or limit further rate hikes, likely causing the JGB curve to steepen, in contrast with the U.S. Treasury curve, which has flattened.

Steven Chu FX Strategist 26:25

Rate gap pushes USD/JPY to 160.

The BOJ's split vote and dovish dissents make it difficult for the BOJ to hike quickly or by more than 25bp, while the Fed remains hawkish, keeping U.S.-Japan policy and yield differentials in favor of the dollar; despite intervention risk, dollar-yen can drift back toward 160 and carry trades remain supported.

Jahangir Aziz Head of Asia Economics, JP Morgan 34:32

USD/JPY range-bound, bias lower.

It is difficult to call the size and timing of yen intervention and the direction is messy, but he expects USD/JPY to remain in a broad 155 to 165 range, with recent developments suggesting it could trade toward the lower side of that range rather than the higher side.

This Bloomberg Markets video, published September 18, 2026, features Shery Ahn, Avril Hong, Peiqian Liu, Jon Gray, Steven Chu, Jahangir Aziz discussing Japanese government bonds, DXJ, FXY, India real estate, Indian REITs, INDA, JGB curve steepener, USD/JPY. 7 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Shery Ahn, Avril Hong, Peiqian Liu, Jon Gray, Steven Chu, Jahangir Aziz · Tickers: Japanese government bonds, DXJ, FXY, India real estate, Indian REITs, INDA, JGB curve steepener, USD/JPY

Bessent Pushes, BOJ Splinters Over Rate Hike

Summary

Ideas

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