The Bank of Japan offered to buy 10 year JGBs at a yield of 0.11%
- Unlimited amount
You'd think such huge monetary easing would be yen negative (and it "should" be) .... but no .... usd/yen is now lower than where it was pre announcement
In early January when the BOJ reduced its bond buying the yen surged. The opposite dynamic is not playing out - in part because the positioning is so much different. In early January the market was hugely short yen. The market is not hugely long yen now, not at all.
I posted earlier the BOJ is not fooling anyone with these increases in JGB purchases ... they still aren't.
Update:
Mind you, Japanese exporters are sending a thank-you note to the BOJ for helping pop the price towards their offers ....
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