Things are getting interesting in bond land, Japanese central bank balance sheet increasing after 09 to keep US bond yields down is finally starting to show signs of fail.
This system is starting to break due to investors losing faith in the system.
As faith is lost US bonds are sold, as US bonds are sold Yields go parabolic, Japan has been a US proxy since 09...
BOJ - Let's challenge you!
Intervening in there currency was a perfect technical set-up as well but as I started in my previous posts, we are going to re-rest the highs as we are, and we could perhaps go further if we break above that spike high of 146 area. However, we could get a fake break to either direction that's where you should be careful. Technically we...
HELLO GUYS THIS MY IDEA 💡ABOUT JP10Y is nice to see strong volume area....
Where is lot of contract accumulated..
I thing that the buyers from this area will be defend this LONG position..
and when the price come back to this area, strong buyers will be push up the market again..
UP TREND + Resistance from the past + Strong volume area is my mainly reason for...
The interest rate flew up today. They will have to buy it back down. How long can they keep this up?
By the end of the year, maybe we'll see either a sovereign default or higher inflation in Japan.
Japan is the largest foreign holder of US debt. This likely will raise US rates.
Rising US yields are attracting those investors who borrow Japanese Yen at the much lower rate and and then purchase American dollars to earn a higher return than in Japan - knowns as the carry trade. The correlation shows times when USDJPY carry trade is a key driver of the currency pair, however it is not always, because these are both go to currencies in times...
As the gap rapidly grows between the Australian 10 Year Rates and Japanese 10 Year Rate, the AUDJP carry trade becomes even more desirable. This week as the pair soared above 83.50 - levels that it has not seen since late in 2018 and the currency pair is currently trading around 83.6.
There are several fundamental factors driving this trend.
Australia's economy...
📌 A Pullback for Chinese Yields
This illustrates the notion of development in a change in trend for China's sovereign bond market . Sellers avoided a breakout and are aiming to test 3.00%.
On the fundamental side , China is outperforming as expectations are skewed towards favouring their management of the virus and recognisable weakness of the West!...
JP10Y seems to have finished minute wave 2 and the next move should be minute 3 of minor 3. Minor 3 should decline yields to around -0.17. If yield crosses up 0.03 this analysis should be reviewed. FOLLOW SKYLINEPRO TO GET UPDATES.
Japan 10-year interest rates seems to be tracing intermediate wave 3 of primary wave 5 down. A critical level is at -0.19, the low of minor wave B. If yields crosses this level the odds get stronger for this scenario and yields could go below -0.29. FOLLOW SKYLINEPRO TO GET UPDATES
Increased spread between Germany 10-year bond yield vs Japan 10-year yield could indicate a slide in the Euro against the Yen. Even though the yield is higher for European bund, the risk appetite is declining, while the global economy is projected to have a slow growth rate through out 2019. This means that investors seek safe heaven assets like the Yen and JP10...
