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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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ECB: Filling the BoJ's old boots?

The fallout from the financial crisis has changed monetary policy beyond recognition, with central banks finding themselves doing things that were previously taboo...

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ECB: Reloading the conventional measures

As expected, the ECB today cut its main refinancing rate by 25bps to a new record low of 0.5%. It also lowered the interest rate on its marginal lending facility by 50bps to 1.0%, narrowing the interest rate corridor...

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