Sending USD/JPY higher rapidly
- JGBs are rallying strongly (10yr yield off to 0.115% or so on the BOJ operations)
- BOJ will buy unlimited amounts at fixed-rate
Note that the Bank of Japan keeps telling us they want to keep yields on 10 year bonds around zero percent. It sometimes takes them a little while respond when yields start to rise, but respond they do. Having said that, they may need to do even more.
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Elsewhere, Commodity futures in China selling off today