Updating the Yen Carry Trade
Posted By Jim Bianco
Inflation in Japan is reaching 40+ year highs. Now that the country has effectively raised the upper limit to its yield curve control, rates are heading higher. Given they are the largest foreign owner of US Treasuries, more attractive Japanese yields are negative for the US bond market. A significantly weaker yen/stronger dollar could change traders opinions, but this is not happening yet.... Read More