OctaFX | OctaFX Forex Broker
Open trading account
Back

Flash: JGB volatility continues to hold foreign mystique – UBS

FXstreet.com (Barcelona) - A bond market is usually headed for trouble when foreigners suddenly flee. So far though there has been no sign of this in Japan despite the recent surge in JGB volatility. In fact, overseas investors have been net buyers of JGBs since the BoJ announced bold easing measures on April 4.

What can explain their loyalty to Japanese fixed income? Previous episodes of QE elsewhere have taught investors to put long-term inflation concerns to one side, and focus instead on the here and now. According to Research Analyst Gareth Berry at UBS, “It was a profitable strategy in the past to buy Gilts and USTs before the Bank of England and the Fed did. Presumably foreign investors are now applying this lesson in Japan.”

ECB's Asmussen cautious on negative deposit rates

ECB Executive Board member Jörg Asmussen said on Monday in Berlin that he was less inclined towards introducing negative deposit rates than the central bank's president Mario Draghi and other Governing Council members and stressed that all pros and cons of such a solution should be carefully considered.
Read more Previous

Flash: Near term US economic risks - Nomura

Nomura economists have highlighted that the US economy is facing near term economic risks.
Read more Next
Start livechat