3 replies to this topic

[redfoliage2]

With Yen Got Higher Value against USD and US stocks plunged Yen carry traders could be back to buy more US asset with less yen. This is the one factor I see may create a huge snap up as the BOJ interest rate still low at 0.5% .

Edited by redfoliage2, 05 March 2007 - 01:41 PM.

[arbman]

Tman was mentioning about the same thing, I also think the same way, the rates are still very cheap, they are just recycling the positions at this point. I think there will be a lot of volatility in the months ahead, but probably not a one way down. At least, the market diverted a crash today.

[Jnavin]

Or Fed could cut rates at its March meeting, something more likely than last week, which the U-S T-bond market has noticed.

[arbman]

The US rates are high, I meant for the BoJ's... Yes, the Fed will reconsider a lot of things in March and there is a good bounce due into April for the same reason, I guess. The market should probably react positively to any softer rate talk...