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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?


To: Ramsey Su who wrote (7453)11/10/1998 10:42:00 AM
From: Sam  Read Replies (2) | Respond to of 9980
 
Ramsey,
In the WSJ article last week announcing the negative rates, they claimed that the people buying these bonds at a premium were betting that the yen would appreciate! I don't see that at all, and it certainly hasn't done so since then. I'm not exactly sure what to make of that expectation, who was doing the expecting, or why, but they seem to have hit a top.

It seems to me that the yen will hit an air pocket at some point in the not too distant future.



To: Ramsey Su who wrote (7453)11/10/1998 9:51:00 PM
From: kenya  Read Replies (1) | Respond to of 9980
 
In a deflationary situation, a yen today is worth more tomorrow; even without interest. That is why there is no incentive to move out. Buying power is increasing as time goes on.