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Don’t Misread The Bank of Japan

Market Depth

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The JGB Market Is the World Duration Anchor in Fixed Income Land

Last week, foreigners bought the largest weekly amount on record of JGBs. Now, at the same time, Japanese investors in turn bought the second largest amount of foreign bonds on record last week. I also explained the complete misreading of BOG policy by the foreign community who shortened JGBs thinking BOG will have to capitulate to either CPI or just get in line with the rest of the world.

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