Goldtent TA Paradise

HARIKARI

1. silverboom says:

   August 2, 2024 - 8:43 am at 8:43 am

   Are we seeing the beginning of the end of all these stinking bubbles?

   Asking for a friend…

2. Chartsmaster says:

   August 2, 2024 - 8:50 am at 8:50 am

   POP goes the weasel!

3. pedro_deleon says:

   August 2, 2024 - 9:02 am at 9:02 am

   from Hunger Games 2.0

   “One of those fingers of fragility that often gets discussed is the implication of the Bank of Japan (BOJ), notably the last major central bank actively providing liquidity into the Hunger Games arena, ending their era of JGB purchases and what that might mean to Japan Inc.’s holdings of fixed income securities around the globe. Will a necessity for Japanese institutions to absorb the ongoing supply of their country’s own government debt result in a repatriation of funds currently parked in overseas bond markets? Could such a thing trigger a chain-reaction as other governments need incentivize their own financial systems to re-emphasize scarce provision of liquidity to their own domestic competitors in the Hunger Games?

   Maybe we will start to get some hint of this at the upcoming BOJ Policy Meeting.

   Bank of Japan opens door for a hawkish double surprise | Reuters

   Reuters suggests it may indeed be coming:

   “The Bank of Japan is dropping signals its quantitative tightening (QT) plan in July could be bigger than markets think, and may even be accompanied by an interest rate hike, as it steps up a steady retreat from its still-huge monetary stimulus.”

   Could this truly result in large holders of overseas bonds liquidating some of those holdings and bringing the funds back home to hold JGBs? This story on Norinchukin Bank makes us think it could be so.

   Norinchukin sounds warning as higher-for-longer rates inflict losses – The Japan Times”