The diagram below sums up well the demand case for silver in today's environment.
Source: Otavio (Tavi) Costa
The Bank of Japan (BOJ) has a real problem now as USDJPY surged up to 153 - a fresh 34-year-low for the yen against the dollar and below the level at which the BoJ last intervened...
Source: Bloomberg, www.zerohedge.com
The global economy is addict to easy-money policies.
While everyone is talking about boj hiking rates, we just experienced one of the largest weekly changes in the BoJ balance sheet assets in history. In USD terms, this move accounted for nearly $80 billion in one week... Source: Tavi Costa, Bloomberg
In case you missed it:
After bank of japan abolished negative interest rates this week for 1st time since 2016, the volume of bonds with negative interest rates has shrunk to $300mln. At its peak, there was a volume of $18tn worth of bonds with negative rates. But this weird experiment seems to be over – for now. Source: HolgerZ, Bloomberg
BREAKING - Bank of Japan raises rates to policy range of 0% to 0.1%, the first such rate hike in over a decade 💹 and scraps yield curve control.
The central bank will also stop buying ETFs and phase out buying of corporate debt. 2 key points: 1) That was completely in line with my preview 2) The tone was dovish as the boJ will continue JGB purchases at approximately the same amount as before. It pledged to gradually reduce its purchases of commercial paper and corporate bonds, with the aim of stopping this practice in about a year. Market reaction >>> The Japanese yen weakened to as much as 149.92 against the greenback, while the Nikkei stock index swung between gains and losses following the BOJ decision. Yields on the 10-year and 30-year JGBs dipped. Source: Bloomberg
Japan’s $4 Trillion offshore funds will ignore first BOJ Hike - stocks and bonds in the US insulated from impact, survey shows
Japanese money is poised to stay offshore as the central bank creeps toward tighter policy, according to the latest Bloomberg Markets Live Pulse survey. Only about 40% of 273 respondents said the first interest-rate hike by the Bank of Japan since 2007 will prompt the nation’s investors to sell foreign assets and repatriate the proceeds back home. That’s good news for US stocks and bonds. Source: Bloomberg
Bank of Japan is expected to end its negative interest rates this week
Marking 1st rate hike since February 2007 in a turning point for hashtag#BoJ's long-running monetary easing pol. A lot' has changed globally since last ³BoJ hike 17 years ago. SRP has a great overview... (through HolgerZ)
Nikkei reported BOJ conducted a gensaki (reverse repo with JGB collateral) operation Monday for the first time in about a month.
*Article cited broad upward pressures on rates amid heightening expectations of an imminent BOJ rate hike, leading traders to conclude the measure was meant to prepare for market reactions Source: C.Barraud https://lnkd.in/e8c8ubcx
