Wednesday, April 22, 2009
Japanese bonds - FT
--Japan is preparign to flog more debt to fund its stimulus, addign extra $110 bnm to $1,430 bn, 200% of GDP
--a shortfal lin tax revenue would requrie mroe debt to plug the gap
--only 7% of JGBs are sold overases. But domestic demand is finite. Houlseholds hold 5% of JGBs and balk at the new issance
--last year, the gonverment intially rekoned retail investors would be good for $62 bn but in teh evnt they bought just $23 bn.
--corporates such as Post Office will pare back as well
--only the buyger of last report is still in the game.
--inverted curve ( 2 vs 20s ) imply the concern over supply
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