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30 Jan 2024

🇯🇵 Hedge Funds, Asset Managers Take Opposite Yen Bets Amid BOJ Talk - Bloomberg, C.Barraud

Hedge funds and asset managers were split on their yen views as the Bank of Japan laid the ground for an end to its negative-rate policy. Leveraged funds cut net yen shorts to the lowest level since February 2023 in the seven days ended Jan. 23 when BOJ announced its last policy decision, according to a report from the Commodity Futures Trading Commission. In contrast, asset managers, such as pension funds and insurance companies, boosted net shorts by the most since May when the investors switched to shorts from longs.

9 Jan 2024

Tokyo CPI down again supports BOJ dovish stance for now

Source: Bloomberg

19 Dec 2023

Japan | BOJ Avoids Rate Hike Signal as It Stands Pat, Driving Yen Lower – Bloomberg

As expected, no change from the BoJ this morning on rates or the YCC. The vote was 9-0, in favor of no change. There wasn’t even a hint of change to the policy statement. No change in language around wages and inflation. The Japanese Yen weakened considerably on the initial press release. Nikkei 225 is up +1.5% Source: Ayesha Tariq, Bloomberg

1 Nov 2023

*BREAKING* BOJ Buys More Bonds to Slow Rising Yields a Day After Tweak Central bank acts after 10-year yield touches decade high - BLOOMBERG

The Bank of Japan stepped into the bond market unexpectedly Wednesday to curb the pace of gains in sovereign yields, just a day after announcing it was loosening its grip on debt prices. The central bank’s unscheduled purchase operation statement came as the benchmark 10-year bond yield touched 0.97% — a fresh decade-high but still below the 1% cap it removed in favor of a more flexible policy setting. There was very little immediate market reaction to the move, with traders trimming one basis point off the 10-year yield before it recovered half of that. Bond futures pared losses and the yen, which is sensitive to shifts in interest rates, shed a fraction of its advance versus the dollar.

31 Oct 2023

As a remainder, Bank of Japan (8301.JP) is a tradeable stock so you can buy some if you wish

Note that the chart does not look pretty... Maybe the market doesn't give much credibility to the management? Source: www.zerohedge.com

22 Sep 2023

BOJ Update

Japan | BOJ left its monetary settings unchanged and offered no clear sign of a shift in its policy stance, putting a damper on market speculation over the prospects for a near-term interest rate hike and adding pressure on the yen. The Bank of Japan kept its negative interest rate and the parameters of its yield curve control program intact on Friday in an outcome predicted by all 46 economists surveyed by Bloomberg. It also maintained a pledge to add to its stimulus without hesitation if needed, a vow that offers yen bears a reason to keep betting against it. Japan’s currency weakened as much as 0.4% after the decision to around the 148.20 mark against the dollar. This helped stocks, which trimmed about half of their losses for the day. The benchmark 10-year bond yield was down half a basis point from Thursday’s closing level at 0.74%. Source: Bloomberg

18 Sep 2023

It seems that Ueda talks are useless...

USD/JPY

7 Aug 2023

The Bank of Japan had to intervene twice this week to slow gains in govt bond yields, underscoring its determination to curb sharp moves in rates.

Nevertheless, the 10y Japanese yield has skyrocketed to 0.65%, well above the 0.5% from the YCC. Source: Bloomberg, HolgerZ

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