As China unloaded Treasury securities and Japan propped up the yen, other countries loaded up.
An important thing to keep our eyes on these days.
In other words, after a spike, the dollar dropped back to the higher end of the normal 20-year range. But the yen is a sloppy mess.
BOJ’s Ueda promises to fuel inflation further, hopes for wage growth. Strategy: let raging inflation bring Japan’s debt-to-GDP ratio back in line.
Bank of Japan clings to negative interest rate policy and yield curve control as inflation spreads across the economy.
A political decision to solve Japan’s horrid fiscal mess by fueling inflation, and forget that 2% target.
But the architect of Abenomics will be outa there in April.
Complicated times for the dollar. The Chinese Renminbi, a distant also-ran, loses ground.
Yen and 10-year yield spiked. BOJ cited bond market dysfunction, didn’t mention elephants in room: raging inflation & yen’s plunge.
But he’ll be out in April.