The bond buys from the BOJ will force Japanese investors into other assets and part of that is spilling over into Treasuries. It also appears to be trickling down to European bonds.
Lost in all the excitement of the past two days, Italian yields are dropping — and it’s not because of political certainty, an ECB rate cut or a strengthening economy.
Lost in all the excitement of the past two days, Italian yields are dropping — and it’s not because of political certainty, an ECB rate cut or a strengthening economy.
The timing of the BOJ decision is a bit unfortunate because it makes it difficult to sort through the cross currents. My belief is that the BOJ is a far bigger factor than the US economy and it will be lasting. Money is fanning out of Japan in all different directions and it will make for some big, lumpy moves over the next few weeks.
The best bet might be to buy trades where speculators are heavily leaning in one way — like EUR and GBP, maybe even AUD. With uncertainly rising, speculators will look to cover longer-term positions and momentum traders will pile in.
leggo qualcosa che penso da ieri e cioe' che il Q.E. JAP portera' soldi su molti tipi di investimento e l'acquisto di euro con il BTP future verde, e' un gran bene per la nostra economia....meno per quella crucca