Update: Well that didn't last long…
Livesquawk: Japan Ministry of Finance say it is not true they are considering 50yr bonds – debunking earlier WSJ story –Rtrs
Who could have seen that denial coming?
Has the BOJ denied the trial balloon yet
— zerohedge (@zerohedge) July 27, 2016
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USDJPY just spiked back over 106.00 after headlines suggesting Japanese PM Shinzo Abe will unveil new stimulus as soon as today. News reports on 27t yen fiscal stimulus and issuance of 50-year bond, both spur yen selling, says David Lu, HK-based director at NBC Financial Markets Asia. We suspect there will be some disappointment after the algos are finished as FNN reports the package will include 13t yen of low-interest loans (so a smaller helicopter than expected) and besides, it's not like the Japanese are suffering from rates being too high.
Abe wil speak today at 0400GMT – no confirmation yet as to whether the stimulus will be the topic.
As one analyst noted, it appears Abe pre-announced the stimulus package. It looks like psuedo debt monetization is on the way, if as expected, the BoJ will buy these 'low interest loans'. But of course, direct debt monetization will never be admitted to… or will it?
The question is – will this be it? Or is this to strawman the size once again to see if the market (for that is all that matters) will be satiated by Abe's promises.
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