Citi(US:C) Sou Hu Cai Jing·2026-01-28 05:27Group 1 - The Japanese yen has experienced its strongest three-day rebound since August 2024, but Citigroup strategist Daniel Tobon remains cautious about turning bullish on the yen [1] - Tobon suggests that for the yen to maintain its upward momentum, Japanese investors need to reinvest in the domestic bond market [1] - The recent rise in the yen is attributed to market speculation that Japan and the U.S. are preparing to support the yen, especially after it approached 160 yen per dollar, a level that previously prompted intervention [1] Group 2 - The sell-off in the Japanese bond market last week significantly increased bond yields, which may encourage investors to withdraw funds from overseas and reinvest in the domestic market [4] - There is a potential for hedge funds to unwind carry trades, which involve borrowing in Japan and investing in higher-yielding countries [4] - Tobon believes that the yen may weaken again before the upcoming elections, and a shift of local investors towards Japanese government bonds could signal a better time to buy yen [4]