We've sort of fizzled out ahead of the FOMC, though I do expect a bit more activity in Europe/UK in the lead up
Here's a piece worth a read from Bloomberg on the shift away from JGBs into riskeir assets
It was out overnight, but ICYMI:
- Ten of 11 banks surveyed by Bloomberg this month said portfolio rebalancing is necessary under the Bank of Japan's negative-rate policy
- 8 saying they've already begun or are considering asset reallocation
- Foreign bonds and alternative investments ... were identified as the most popular products by eight of the banks
- Two said they favor Japanese and foreign stocks. One declined to comment
"JGBs are losing appeal as an investment asset," said Yoshihiro Yamanaka, an executive officer at Bank of Kyoto Ltd., one of the lenders surveyed. "We have to turn to foreign bonds, such as U.S. and European notes, or alternative products, to meet business expectations for securing profits."
