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JGBs: Banking on the BoJ

While fully consistent with Japan’s improved economic outlook and equity market gains, the upwards shift in JGB yields since early April has raised concerns. Not least of these is the impact on the health of Japan’s banks...

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Weakness in the euro area's core: Structural or cyclical?

The ECB’s decision in early May to cut its key policy rate to a new record low mainly reflected the deteriorating economic outlook in the euro area’s core. Today’s GDP figures provided a timely reminder of the challenges faced by...

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JGBs: BoJ provides the ultimate backstop

Recent days have seen a big sell off in the JGB market. The 10Y yield has leapt from 60bps last Thursday to 86bps today. The 5Y yield, meanwhile, has risen from 23bps to over 40bps over the same period. It is certainly one of the sharpest sell offs in the...

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Japan: Is the virtuous cycle within reach?

What a difference a change of leadership has made. Since Japan’s general election was called six months ago, presaging Abenomics and the BoJ’s unprecedented monetary easing, the country’s equity markets have wiped the...

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ECB policy: Looking at the negatives

Last week’s ECB meeting was, to the extent that it offered nothing more concrete than a 25bp cut in the refinancing rate, a disappointment. But markets were mollified by Draghi’s hint in his press conference of further rate...

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