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A Traders’ Week Ahead Playbook: Political Developments, US Inflation Data & Central Bank Easing
We start the Weekly Playbook with the Japanese political development, where PM Ishiba has taken the pragmatic step of resigning ahead of an impending snap LDP election. This outcome isn’t necessarily surprising, but the focus now shifts to who could be the replacement, and what—if anything—that means for political stability in Japan and a potential coalition partner for the LDP. The market will also consider the extent of additional fiscal measures and budgets under a new leadership, as the degree of fiscal impulse will be important in containing upside in long-end JGBs. These developments will likely be seen ... (full story)