Sunday, 2 June 2013

INVESTORS ARE NOT CONFIDENT IN THE CONVICTION OF THE BANK OF JAPAN.

That is the explanation proposed by economist Paul Krugman. Keep in mind, as Krugman points out, lack of faith in the BOJ does not imply JGBs will rise. Rather, rates will increase if investors think the BOJ will tighten, but rates may fall if investors expect defl ation. 

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