Yen at 120 Seen by Best Forecaster Nomura on Yield
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Nomura Holdings Inc., the most-accurate yen forecaster, sees a 10 percent drop to 120 per dollar on a persistent trade deficit and unattractive yields.
Two-year U.S. Treasury bonds provided an additional yield of 52 basis points on Sept. 24, the most since April 2011, data compiled by Bloomberg show. The gap stood at 40 basis points today. The correlation between the spread and the dollar-yen rate rose to a six-month high last week as the Japanese currency depreciated past 110 for the first time since August 2008.