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

Eurodollar University

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Why Are Foreigners Buying Japanese Bills?

The yen carry trade has been a term that's been thrown around for many, many years. The banks in japan begin with all the sort of collateral they need, including the ability to post japanese government bond bills. They don't mind paying a negative return, because the structural dollar shortage means they're getting paid on the swap,. not for holding yen or holding yen collateral.

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