Convenience Yields in the Global Financial System

In terms of convenience yields, we find that the dollar is not special at all. If you look at the cross section of convenience yields in different countries, it's very well explained by the level of interest rates and countries. So australia has high interest rates and a large convenience yeald there, we find about 60 basis points. Japan has very low interest rates, negative even sometimes. And we actually quite often find that japan is a negative convenience yeal too. In this sense, the us. Is not seeming to be special in the global financial system, ok?

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