ORLANDO, Fla. : Japan risks pulling the rug from under the much-touted 'year of the bond.'Further changes to the Bank of Japan's yield curve control (YCC) policy could bring more Japanese money back home, against a backdrop of rising hedging costs that are already weighing on domestic investors' demand fo
Further changes to the Bank of Japan's yield curve control policy could bring more Japanese money back home, against a backdrop of rising hedging costs that are already weighing on domestic investors' demand for overseas bonds.
Around half of that is in U.S. assets such as Treasuries, agency debt and corporate bonds, and around a third in euro zone securities. Unloading even a fraction of them could have a discernible impact on flows, prices and yields. Wholesale liquidation of Japanese investors' foreign bond holdings is unlikely barring a"very substantial" rise in Japanese yields from here. The reality may be less eye-catching, but no less powerful over the long term.
Graphic 2: Japanese holdings of overseas bonds,https://fingfx.thomsonreuters.com/gfx/mkt/egpbymqnmvq/Setser1.jpg Currency hedging is done through FX and interest rate derivatives markets, and generally boils down to borrowing on a short-term basis to buy longer-dated securities. Last year, Japanese investor selling picked up pace as U.S. and euro zone borrowing costs rose. Setser and Etra estimate that foreign bond sales probably neared $200 billion.
日本 最新ニュース, 日本 見出し
Similar News:他のニュース ソースから収集した、これに似たニュース記事を読むこともできます。
Former 'Top Gear' host Clarkson apologises for Meghan columnClarkson wrote in his apology that he sent his column to The Sun without reading it out to anyone. Read more at straitstimes.com.
続きを読む »
British TV presenter apologises to Harry and Meghan over 'naked' columnLONDON — British TV presenter Jeremy Clarkson said he had emailed an apology to Prince Harry and Meghan after he wrote in a national newspaper column that he hoped the Duchess of Sussex would one day be forced to parade naked through the streets. Clarkson, who gained worldwide fame as presenter of motoring show Top Gear, wrote in the Sun...
続きを読む »
Japan December wholesale prices rise more than expectedTOKYO : Japan's wholesale prices rose a faster-than-expected 10.2 per cent in December from a year earlier, data showed on Monday, adding to recent growing signs of inflationary pressure that could keep the central bank under pressure to raise interest rates.The rise in the corporate goods price index (CG
続きを読む »
Under pressure to hike wages, Japan CEOs are advocating merit-based payThis reflects a degree of hesitancy among corporate leaders to raise salaries in a knee-jerk reaction to inflation. Read more at straitstimes.com.
続きを読む »
Japan wins support of G-7 nations for its stronger defence postureTOKYO – Japanese Prime Minister Fumio Kishida returned from a seven-day, five-country trip on Sunday with the wind in his sails, having won the backing of fellow Group of Seven (G-7) leaders for a radical overhaul to its pacifist security posture. Read more at straitstimes.com.
続きを読む »
Explainer-How does Japan's yield curve control work?TOKYO : The Bank of Japan's yield curve control (YCC) is under fierce market attack, as investors test the bank's commitment to capping bond yields with inflation above the BOJ's target.The BOJ's ultra-easy policy targets some short-term interest rates at -0.1 per cent and the 10-year government bond yiel
続きを読む »