The yen’s recent strength may be short-lived as August draws to a close. The currency has slumped against major trading peers in the final days of every month since February, and initial flows are suggesting this month will be no different. The recent strength of Japanese equities and bond markets has left asset managers racing to rejigger their portfolios to meet stringent allocation rules across asset classes at the end of the month. That rebalancing alongside hedging flows is behind the yen selling, according to traders in New York and Europe. The global rates outlook — the Bank of Japan signaled it will stick to ... (full story)