Tag Archives: BOJ - 6 posts found

BoJ Underscores Support for USDJPY

Data and policy continue to line up for a weaker JPY. Kuroda has re-iterated his commitment to stimulus, stating, “it’s premature to discuss in an exact way about exit strategy”. Kuroda continues his battle against the deflation mindset; and, as…


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Buy USDJPY Dips

Fundamentals in Japan still support a weaker JPY. Yield differentials are one of the most important drivers of currencies and, as the top chart shows, this shows that USDJPY is becoming stretched to the downside. Also, as we highlighted in…


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Japanese Equity Flows Diverge

October saw the BoJ’s announcement of increased stimulus, coordinated with the new targets for the GPIF, 25% each for foreign and domestic equities (up from 12% each), and a decrease in JGBs, from 60% to 35% of holdings.  Investors, both…


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Anti-QE in Japan

Last week’s BoJ meeting did not meet expectations of trying to soothe the Japanese bond market.  Yields have shot up, with 10y yields 50% higher in May as of this morning, largely a consequence of the BoJ succeeding in raising…


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Japan Edges Towards the Cliff

The Japanese economy continues to weaken and a recession is now the main consensus. The country’s trade balance, which was long in surplus, is now moving deeper and deeper into deficit and the third quarter numbers almost certainly will show contraction, and these are more than likely to be followed by another set of negative readings for Q4


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Japan’s economy is running out of time and growth

The recent Q4-12 GDP print in Japan underscores the mounting pressure on BOJ and Ministry of Finance officials to act decisively on the ongoing strength of the Yen. Japan’s economy slumped to a  2.9% contraction on the year (nominal GDP,…


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