Japanese Yen and US Treasuries

Discussion of the Bond portion of the Permanent Portfolio

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whatchamacallit
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Japanese Yen and US Treasuries

Post by whatchamacallit » Tue Apr 05, 2022 4:24 pm

Weston Nakamura has some great insight on Japanese Yen and how it is important to price of US assets:

https://www.youtube.com/watch?v=6H1SvJYhOGA
The Japanese yen, long a safe haven, is not reacting to crisis this time around the way it has in the past. In fact, the yen just broke through a key long-term level of technical support and is trading at six-year lows versus the U.S. dollar. But Governor Haruhiko Kuroda continues to defend the Bank of Japan’s yield cap, in place to sustain accommodative monetary policy, despite broader risks to the domestic situation. Our man in Japan, Weston Nakamura, joins Maggie Lake to assess the global implications of the country’s continuing efforts to stimulate growth in the world’s third-largest economy. Then, Maggie welcomes Darius Dale, founder and CEO of 42 Macro, to talk about the Federal Reserve’s fight against inflation, the impact of tighter policy on the housing market, and the employment situation in the U.S. Want to submit questions? Drop them right here on the
Exchange: https://rvtv.io/36Zk3uw

Part 1: Why Global Markets Are Addicted to the Bank of Japan
https://youtu.be/t9l2flhMSVE

Part 2: 2018 - When Bank of Japan Failed to Control the Yield Curve
https://youtu.be/JQV7pIGe9hI

From what I could listen to and gather, it is the easy money yen that is keeping bond yields so low.
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