Intraday Market Thoughts

Yen Flows, Yields Lows & the Missing Link

by Ashraf Laidi
Dec 10, 2012 18:05

Escalating yen shorts vs USD hit a 5-yr high but they remain low compared to the earlier high, which was a record. Back then, USDJPY was at a 5-year high of 124.14, global equities hit new records, private equity deals were raging with extreme leverage and even busts in US mortgage providers were still under the media radar. But the missing link remains in bonds. Unlike in 2007, when global yields were soaring in tandem on an overheating global economy and emerging inflation fears, today s yields are mired by margin suppression and financial repression. See more charts and analysis here: http://www.cityindex.co.uk/market-analysis/market-news/3480742012/yen-shorts-yield-lows-five-year-cycles/

 
 

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