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Achtung Abe!!

The recent volatility in Japanese financial markets has seen Abenomics come in for much (unwarranted) criticism. In turn, this has seen much greater scrutiny of the “third arrow” of Abenomics – the structural reform agenda...

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Is Abenomics failing?

The recent volatility seen in Japanese financial markets has spawned plenty of column inches suggesting that it marks the point at which Abenomics was revealed to be a failure. In particular, the “spike” in JGB yields, it has been...

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JGBs: Banking on the BoJ

While fully consistent with Japan’s improved economic outlook and equity market gains, the upwards shift in JGB yields since early April has raised concerns. Not least of these is the impact on the health of Japan’s banks...

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JGBs: BoJ provides the ultimate backstop

Recent days have seen a big sell off in the JGB market. The 10Y yield has leapt from 60bps last Thursday to 86bps today. The 5Y yield, meanwhile, has risen from 23bps to over 40bps over the same period. It is certainly one of the sharpest sell offs in the...

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Japan: Is the virtuous cycle within reach?

What a difference a change of leadership has made. Since Japan’s general election was called six months ago, presaging Abenomics and the BoJ’s unprecedented monetary easing, the country’s equity markets have wiped the...

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