Hedge Funds Bet BOJ Lifts Yen, JGB Yields With Hawkish Hints

A growing number of hedge funds are positioning for potential hawkish signals from the Bank of Japan as the Iran war amplifies inflation risks in the energy-importing nation.

While traders are almost certain the BOJ will keep interest rates steady at its policy meeting on Thursday, there are far more variables at play in Governor Kazuo Ueda’s messaging at his press conference afterward.