Japanese markets are closed today for Japan’s public holiday, Navy Day.
- Seaman’s Day, or Umi no Hi, is a national holiday in Japan celebrated on the third Monday in July. It honors the importance of the ocean to Japan as an island nation and recognizes maritime activities and the economic and cultural significance of the sea. The holiday also encourages people to reflect on the blessings of the ocean and think about the environment. Many people celebrate by spending time at the beach, participating in sea-related events, and enjoying water sports.
Physical US bond trading during Asian trading hours is primarily done in Japan. So with the Japanese markets off today, physical US bond trading will be virtually non-existent during this time zone.
Japan is one of the largest holders of U.S. Treasuries. The high demand and large holdings of U.S. Treasuries in Japan create a deep and liquid market, which attracts traders and institutions looking to buy or sell these bonds during Asian trading hours. Major Japanese financial institutions, including banks and insurance companies, are important participants in the U.S. Treasury market. Their active participation requires a strong trading infrastructure in Japan.
Liquidity flowing into markets such as the Forex market will also be reduced.
Navy Day in Japan – Good luck to all the celebrants!