Tokyo Traders’ Equinox Break Disrupted by Fed, BOJ Meetings
- Investors holding off from large wagers as meetings loom
- Japan off on Monday, Thursday to sandwich key policy decisions
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Bond and currency traders looking for liquidity this week face three major obstacles: the Bank of Japan, the Federal Reserve and Japan’s holiday calendar.
Investors have been holding off from making large wagers before Wednesday’s policy decisions by the Bank of Japan and Federal Reserve. Worsening liquidity means any transaction -- no matter how small -- can hit markets disproportionately hard. The twin meetings fall in between national holidays in Japan -- Respect for the Aged on Monday and the Autumnal Equinox on Thursday. While Treasuries trading in Asia will be closed on those days, currency transactions will continue in the 24-hour foreign-exchange markets.