It is important to monitor the Japanese Bond market in the form of - TopicsExpress



          

It is important to monitor the Japanese Bond market in the form of JGB for 10 years yields. The BOJs attempts to weaken the Yen and let the market know they intend on supporting the bond market till the bitter end. They can’t afford for rates to rise, so of course they are going to buy bonds. Investors are willing to even purchase bonds that yield below inflation rate; thus giving rise to a negative holding interest rates. Is this good for a nation that is having a large proportion of its people aging and thus the declining savings? Its long term deficit budget will take a toll on Japan as struggles to maintain a balancing act of getting out of deflation by stimulating economic activities against induced inflation on a backdrop of a declining national savings scenario. How would this affect you and me as a trader?
Posted on: Sun, 23 Mar 2014 14:52:12 +0000

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