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BOJ Credibility Questioned By Bond Markets

Published 02/08/2016, 14:30
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“There is an issue of a credibility gap between the academic approach taken by Kuroda and the markets thinking what is going on”, quotes Bill Blain, Strategist at Mint Partners, as we discuss the macro economic situation in US, Japan and China. Bill is also joined by Nick Batsford, CEO at Tip TV, and Zak Mir, Technical Analyst at Zak’s Traders Cafe.

Highlights:

“Fascinating situation in the global monetary policy. PMIs indicate US economy moving towards take-off speed.”

“We have commodity producers suffering. Dollar strength would worsen their problems.”

“BOJ underwhelmed expectations, sell-off in JGB and sharp rise in 10-yr yield to have ramifications for global markets. Rising yields could be the wakeup call for markets.”

“What's behind the rout in the bond market – issue of credibility gap between the academic approach undertaken by Kuroda and the markets thinking what is going on.”

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