(Source: Bloomberg)
Our last report suggested that the BOJ was preparing to switch its ETF holdings for JGBs, in order to meet the global central bank imperative to deflate risk assets and Prime Minister Abe’s need to enable more fiscal stimulus. The BOJ’s latest unconditional bid for JGBs was seen as an initial precursor of the switch.
Following the BOJ’s unconditional bid for JGBs early in the day a Bloomberg ensued.
Coincidence?
