Desk talk USDJPY: BOJ may be looking to buy (or state they are looking to buy,) which lets face it, is pretty much the same thing, a few lumpy JGB’s.  As previously posted on LI, with the help of a graphic video from Reuters, the the BOJ is moving away from outright bond purchases to YCC (Yield Curve Control) via their Three Arrow policy.  We are getting near to 0.1% on 10 year yields which i’m told is a no no. I didn’t ask why. Sometimes it’s best not to.  All a bit of talk but buying USDJPY along with broad USD firmness in London may a decent call if the current trend continues.

Patrick Reid
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