November 2011
Beginner
335 pages
9h 33m
English
There are two factors for consideration regarding the Japanese yield curve and the U.S. dollar/Japanese yen. The Japanese issue 40-year JGBs. This time frame is longer than the United States, which issues 30-year Treasuries at the longest end of their curve. This must be factored in any long-term U.S. dollar/Japanese yen investment strategy.
Secondly, the Japanese Ministry of Finance just issued, for the first time, in July 2010 a three-year fixed-rate bond. Sales and longevity of this issue is anyone's guess at this stage, but what this does to the short end of the Japanese/U.S. curve is interesting. Refer to Exhibit 6.20, the chart from the September 1 and 2, 2010, auction of JGBs and notice ...
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