JEast Posted August 25, 2014 Share Posted August 25, 2014 I assume many have been scratching their heads as to why the US 30-year bond has been rallying this year. At the risk of pontification, maybe the Asian central banks are just reading the tealeaves in the currency markets and specifically the Japanese ¥en. As the ¥en approaches 110 against the USD, the other Asian economies will nearly be forced to depreciated too. If/When this happens, I suspect the best place to park capital as a central banker or Asian corporate CFO is in US Treasuries while the drama plays out. If this comes to pass, the secondary effect is that the US will be importing non-inflationary 'stuff.' Stay tuned. Cheers JEast Link to comment Share on other sites More sharing options...
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