Morgan Stanley on the yen and franc
From Morgan Stanley:
Buy JPY and CHF. The arrival of Abenomics and BoJ’s Kuroda allowed real bond yields to decline, the JPY to weaken and equities to rise. This one-time policy adjustment has run its course. While there is no ‘zero boundary’ for nominal rates, the zero line has reduced the pace at which nominal yields can fall. Within exhausted yield curves the elasticity of bond yields to fall is now lower than before, imposing significant risk for primary bond dealers.
