I agree with your assumptions wrt of the Japanese government's motivation to get people out of jpy n jgb. I would also add another cynical motivation. Only a few months ago the long end of UST market was out of control. Its took Yellen issuance tricks n huge ORRP drawdown to get it back under control and also Ackmans public removal of his short UST postion. ORR will run out end Feb. Maybe US has found a replacement in the Japanese investor. Maybe the Japanese will favour USTs over US stocks.
Hi Weston
Really loving the great work your doing.
I agree with your assumptions wrt of the Japanese government's motivation to get people out of jpy n jgb. I would also add another cynical motivation. Only a few months ago the long end of UST market was out of control. Its took Yellen issuance tricks n huge ORRP drawdown to get it back under control and also Ackmans public removal of his short UST postion. ORR will run out end Feb. Maybe US has found a replacement in the Japanese investor. Maybe the Japanese will favour USTs over US stocks.