Yen's Yield Intact
Back in April, I wrote a letter to the Financial Times “It is premature to claim the end of the yen's safe haven” arguing against Axel Merk's statement that the yen no longer served as a safe haven during volatile markets. Not only I proved the yen rose during 2 clear episodes of falling equities in February and April but it continues tp do so as equities hesitate on US policy paralysis. This brings back the old positive relationship between bond yields and the yen. Those wondering about treasuries' rising values (and falling yields) despite the ongoing shutdown ought to consider the implications of lost salaries to over 500,000 govt worker and the consequences for consumer demand.