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"When I go to the gym and there's no freshly washed socks, I take the pair that's relatively...

"When I go to the gym and there's no freshly washed socks, I take the pair that's relatively clean," says Japan MOF official Chikashisa Sumi, explaining the enduring attractiveness of 10-year JGBs. Foreign ownership of the paper has risen to a record 8.3% of the total outstanding as the 0.75% yield no longer looks so outlandishly low - and if the yen is going to appreciate, the low yield is but a secondary issue.
Comments (2)
  • wyostocks
    , contributor
    Comments (7712) | Send Message
     
    And just why should the Yen appreciate?
    24 Jul 2012, 03:29 PM Reply Like
  • Tao Jaxx
    , contributor
    Comments (1274) | Send Message
     
    Because the world de-leverages and the world borrowed yens to the eyeballs for yen carry trades (short yen, long risk assets) which they now unwind.
    That's why.
    Same for US dollars.
    24 Jul 2012, 03:38 PM Reply Like
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