According to @KobeissiLetter, the Bank of Japan is offloading its balance sheet as its Japanese government bond holdings fell to about 48% of the outstanding total, the lowest in eight years, down seven percentage points from the 2022 peak, and monthly JGB purchases have been reduced from 5.7 trillion yen.

According to @KobeissiLetter, liquidity in Japan’s government bond market has collapsed as the JGB Liquidity Index jumped to 9.5 on Tuesday, marking the worst liquidity conditions on record (source: @KobeissiLetter). The post adds that the index has doubled over the past 12 months and that stress is unfolding in a roughly $7.6 trillion market, a backdrop that flags higher execution risk for rates strategies and warrants close monitoring of cross-asset liquidity, including FX and crypto risk proxies (source: @KobeissiLetter).

According to @business, a record of discussions from the Bank of Japan’s latest board meeting signaled the next interest rate increase could come as soon as December, matching many market participants’ expectations, source: Bloomberg. For traders, this flags elevated event risk into December for JPY crosses and Japanese rates, with expectations already leaning toward a potential hike as reported by @business, source: Bloomberg.

According to @charlesdhaussy, Sanae Takaichi’s election as Japan’s prime minister is boosting crypto sentiment on expectations of looser policies, with Bitcoin hitting a record high versus the yen (source: @charlesdhaussy on X, Oct 6, 2025). He attributes the BTC/JPY surge to the anticipated policy easing under the new administration, highlighting a bullish local-currency breakout for BTC (source: @charlesdhaussy on X, Oct 6, 2025).

According to @business, strategists expect Sanae Takaichi’s pro-stimulus agenda to boost Japanese equity sentiment, with upside focus on benchmarks like Nikkei 225 and TOPIX as policy support underpins risk assets, source: @business. According to @business, strategists also say her preference for easy monetary policy could weigh on the yen, keeping upside risk in USD/JPY in focus for FX traders, source: @business. According to @business, traders can monitor headline-driven moves in Japanese stock futures alongside USD/JPY volatility, and watch BTC/JPY for spillover from yen weakness into crypto pairs, source: @business.

According to @business, Japan’s stock market is likely to receive support after pro-stimulus Sanae Takaichi won the ruling party leadership, while the yen and long-term Japanese government bonds are expected to come under pressure, indicating equity-positive and FX/bond-negative bias for near-term trades. Source: Bloomberg via @business, Oct 5, 2025.