The Bank of Japan opens the door for >1% 10yr bond yields alongside a large revision of inflation forecasts and yet the JPY weakens again – exactly as we anticipated. Meanwhile, the US Treasury issuance bazooka was nowhere to be seen, or was it?
Japan Watch: Flows in JPY and JGBs after the YCC decision
How on earth can the JPY weaken when 10yr JPY yields are on the rise? We look at flows and investment mandates and how they impact the JPY and JGBs. We still see 150+ on the horizon for USDJPY.
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Japan Watch: The pros and cons for Ueda
It seems carved in stone that the Bank of Japan will have to revise the inflation path higher again in projections but will it be enough for Ueda to move the needle on the yield curve control? Here is our list of pros and cons and our base-case!
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Japan Watch #2: Ueda is under increasing pressure to act
The first meeting with Ueda at the helm takes place this week. The Bank of Japan is under increasing pressure to act and the Finance Ministry (and Warren Buffet) seems to be preparing for higher interest rates.
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Japan Watch: The Flight Back Home
Japan remains a MUST watch as a risk taker in the West. With the potential scrapping of the YCC policy and the recent recall of capital to domestic markets, could this be a potential time bomb for Western markets? Here is how we monitor the situation.
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Japan Watch – The YCC time bomb for Western Fixed Income
Japan is a MUST watch as a risk taker in the West as the potential scrapping of the YCC policy holds true time bomb potential for Western markets. Here is what is currently priced in and how to position for it.
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