In the wake of the BoJ’s Thursday decision to follow Haruhiko Kuroda further and further into policy Neverland, it’s probably worth reminding you about just how surreal the situation has become with regard to the “Tokyo Whale” and its ETF book. For those who might have missed our most recent posts on this, you’re encouraged…
Thursday was all about people who might have gotten away with murder…
BOJ DELAYS TIMING OF REACHING 2% GOAL TO AROUND FY2019
If you didn’t get your fill of hand-wringing over DM central banks last week, then you’re in luck…
Dammit no one is really talking about this, but it’s definitely notable. On both Monday and Tuesday we said that Japan has set its sights on JGB 5Y yields. Basically, the 5Y has become the new frontier in capping 10Y yields. “It looks like the BoJ may now have to fight to contain 5Y JGB…
Well, I’d say “it’s quiet out there,” but that’s cliché. So how about this: “ain’t shit shakin’ but the leaves in the trees“. Ok, maybe a few things happened while you were asleep. But not much. Let’s walk through some things. We got China PPI and CPI, with the former printing +5.5% for June, in…
Via Kevin Muir of “The Macro Tourist” fame It’s one of those periods when everything is conspiring against precious metals. For those of the bullish persuasion, this can be a difficult time. I have resorted to wearing my own self-imposed “cone of precious metal trading” in an attempt to stop me from buying too much,…
Right, so first thing Thursday morning we noted that 10Y JGB yields had risen to 0.10% for the first time since mid-February. “This suggests the upward pressure on DM yields globally is starting to test the BoJ’s YCC,” we continued, adding that “the focus is squarely on BoJ buying including Friday’s purchase operation which the…
Well, the won is at four-month low against the dollar on Thursday because, well, because a mushroom cloud over Seoul isn’t an entirely far-fetched proposition. “The won is under pressure as it appears North Korea is getting closer and closer to its nuclear program and that is causing tension and apprehension in the Korean peninsula,”…
Ok, so Shinzo Abe’s LDP suffered a stunning loss in Tokyo assembly elections over the weekend, winning their lowest number of seats ever, and that prompted calls for a cabinet reshuffle. “It looks like a tough situation,” LDP Secretary General Toshihiro Nikai said on Sunday. “This is major, it’s serious,” independent political analyst Minoru Morita added. “He…
It’s Friday and God said, “let there be data: and there was data.” Let’s start in Europe, where inflation slowed to 1.3% y/y this month from 1.4% (final) in May. That’s a bit higher than estimates. The core rate printed at 1.1% y/y, that’s also a bit higher than forecast and higher than May’s 0.9%…
“The Fed has enjoyed free-ridership of doing so while everyone else is still printing away. This has meant that financial market conditions have taken it wholly in stride. To assert that this will be the case when everyone else join is making a big assumption about the efficacy of the cure.”
“Most central banks are playing at 10, all the way up, all the way up, you’re on ten, where can you go from there?”
Well, the overnight action was predictable under the circumstances, but it’s nevertheless unnerving for anyone long risk at these levels. A day after Mario Draghi took what certainly seems to have been a hawkish turn by saying the ECB would “look through” lackluster inflation data, the euro hit a 1-year high: “Macro accounts jumped on…
“The moment you doubt whether you can fly, you cease forever to be able to do it.”
