I think we need to follow the current bond market movements a little more closely. Specifically, the 10-year yields are a key area, around 3% for Japan and 4.8% for the US. This time, what's being priced in isn't just a bond sell-off originating from Japan.

AI investments have started to create significant demand for energy, electricity, natural gas, copper, and infrastructure. Adding to this the rise in energy prices, it's creating renewed upward pressure on inflation.

There's a similar problem in Japan. The weak yen and high energy costs are increasing inflationary pressure there. As a result, Japanese bond yields are rising. As Japanese bonds become more attractive, there's a possibility that some of the Japanese money that has been flowing into US and European bonds for years will return. This puts extra pressure on the global bond market, which is already under selling pressure.

The Fed stopped its monetary tightening in the past period, but didn't switch to monetary expansion either. Now, with inflation becoming a problem again, the possibility of an interest rate hike at the next meeting is being discussed. So, I can say that we are going through a very strange period for the markets, especially in the run-up to the elections.

On the one hand, the Fed isn't tightening further through its balance sheet, but on the other hand, the likelihood of having to raise the policy rate again due to inflation is increasing. At least, that's what the markets are pricing in right now. If you're asking yourself how we can get out of this situation; the Fed should keep interest rates high as long as inflation continues to rise, signaling increases if necessary, but not actually raising them. Because if interest rates rise, things will move from rhetoric to action, and all algorithms could experience a sharp shift in position. If a serious liquidity problem arises in the bond market, I think they will provide liquidity to the market through tools like repos without resorting to monetary easing. The current administration team is acting very professionally. I can say that scenarios outside of what I've mentioned could even lead us into a bear market.