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11 Jun 2013
Flash: BoJ reveals no new agenda as USD/JPY crumbles – UBS
FXstreet.com (New York) - The Bank of Japan (BoJ) announced no new policy initiatives overnight.
According to Research Analyst Gareth Berry at UBS, “A minority of investors had positioned in advance for an expansion of the ETF/REIT purchase program but this did not materialize - it seems there will be no enhanced BoJ support for equities for now at least, despite ongoing volatility.”
Moreover, JGB investors had nothing to cheer about either. Hopes that longer-term liquidity operations would be used to support the front end of the yield curve also proved unfounded. The result is that local equities and JGBs have seen a mini-selloff since the announcement, and the USD/JPY has followed lower too.
According to Research Analyst Gareth Berry at UBS, “A minority of investors had positioned in advance for an expansion of the ETF/REIT purchase program but this did not materialize - it seems there will be no enhanced BoJ support for equities for now at least, despite ongoing volatility.”
Moreover, JGB investors had nothing to cheer about either. Hopes that longer-term liquidity operations would be used to support the front end of the yield curve also proved unfounded. The result is that local equities and JGBs have seen a mini-selloff since the announcement, and the USD/JPY has followed lower too.