USD/JPY flows: Supplementary Budget Approved

To combat steadily higher energy pressure, Japan's cabinet has approved a ¥3.1 trillion supplementary budget. It is widely expected as the magnitude of extra stimulus are unlikely to be covered from special funds previously set aside. JGB yields' reaction is so far modest with only the 10yr yields rising the most by more than 2%.

USD/JPY is trading just below the 160 handle at 159.89.