‘It Can’t Be Helped’: Japanese Inflation Refuses To Rise Despite Bajillions In Money Printing

“The BOJ has done what it can with monetary policy. It can’t be helped.”

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O, Canada! China?! Yellen Yellin’: Full Week Ahead Preview

Ok, well this should be an interesting week. We’ll get the BoC, which will make Bloomberg’s Luke Kawa happy because it means Canada will be in the spotlight for once. He’s got some fun Canada-themed socks we imagine he might wear on Wednesday. “The recent avalanche of hawkish messages from the BoC, as well as…

“A Major, Serious” Situation In Japan, PMIs Galore, And A Deadline For Qatar

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…

Safety Sought: Yen Rallies As Markets Nervously Eye Potentially Dangerous Thursday

So on Sunday, in our week ahead preview, we noted that Thursday would bring a number of potential land mines and that, as usual, FX would be the transmission mechanism for markets. We’re getting a taste of that on Tuesday as the yen tops the G-10 leader board, rising to a six-week high against the stumbling…

Japan Dumps US Debt In Longest Streak Since June 2013

As you’re no doubt aware, Japanese investors have been dumping US debt. “Data from Japan’s Ministry of Finance confirmed this past week that Japanese investors sold around ¥1.3 trillion ($11.52 billion) in foreign bonds between Jan. 21 and Jan. 28, taking net sales for the past 12 weeks to more than ¥3.7 trillion, the largest…

Markets Relieved After Trump/Abe Meeting, Reflation Narrative Intact

Well, it was all aboard the reflation train right out of the gate in early Asian trading last night with USDJPY jumping with 10Y yields and futs, following what counts as a “successful” high level summit these days. As I noted last week, the fact that Trump didn’t physically assault Japanese PM Shinzo Abe (well,…

Daily Kickstart (Japan Battles Bond Markets, Mexico/Turkey Battle FX Traders, May Meets W/Trump)

As is rapidly becoming custom, we start with FX markets, where the USDJPY rose again, recapturing a 115 handle following the BoJ’s 10th bond buying operation of the month. If we hit 116, the dollar rally could gather some momentum “as the market seems to be short vol above that level,” one European trader told…

An Inflationary Catch-22

The perpetual thorn in policymakers’ side during the post-crisis era has been inflation or, more appropriately, a lack thereof. No matter what central banks have tried, the deflationary impulse has proven to be remarkably stubborn and paradoxically, QE might well have contributed by preventing creative destruction from purging excess capacity. Japan’s struggle has been particularly amusing…