AI Data Insight
Japan's real M2 money supply reached 1296.4 trillion yen in Q2 2026, showing a slight increase from the previous value of 1295.6 trillion yen. Despite the Bank of Japan's gradual push to normalize monetary policy, the overall market liquidity level remains robust. With the severe depreciation of the yen and the emergence of sticky inflation, the pace of future interest rate hikes will be the key driver of market liquidity and government bond yields.