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Hunting for Signs of US dollar shortages in Japan [Ep. 266, Eurodollar University]

Eurodollar University

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Is It the Good One, or the Bad One?

The falling yields can be a sign of good news. Banks are doing more business abroad. Money's being expanded. So higer demand for the bill speak to be collateral, right? Yes. That's one explanation. But then there's also a rush to get collateral cause there's a globa monetary shortage,. Then thets all you needto maclato, because something has changed in the swap market. The yen care trade and if there's a sudden rush to be able to do th at where you have to post more collateral for probably less us Dollars swapped than would be consistent with some of the other deflationary tightening indications that we see around the rest of the world.

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