The BoJ will have to revise the inflation forecasts UP again later this month ultimately signaling that inflation will be above 2% for the next two years. Global bond markets should start to care about the BoJ again!
Something for your Espresso: The confusing flexibility of the BoJ
A weaker JPY paired with higher JGB yields and a steeper curve. The JPY markets are sending mixed signals but maybe the whole purpose of the BoJ policy was to leave markets uncertain on the direction of travel.
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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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