The Epic American Credit and Bond Bubble Laboratory Message Board

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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: Louis V. Lambrecht who wrote (5814)	1/22/2004 2:46:37 PM
From: russwinter	Read Replies (3) of 110194

It's the Bank of Japan that's driving this big bond rally, as they are going nuts on intervention now. They are really trapped, given that the lower they drive rates with these bond purchases, the more in turn the USD gets sold off, forcing even more intervention. To say bond buying intervention is counterproductive, and instead feeds the USD decline is an understatement. Another case of treating the patient by bleeding him with leeches. If they really wanted to turn the yen appreciation tide, they'd stop buying, and let US rates back up about 75 BPS.

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