The yen should be watched closely. Many players are probably short it because Japan isnt raising rates. However, if they are long bonds and have to sell the yen could fly a bit. We shall see.
Bonds were smoked today in a rout that was a long time coming. Is FCB buying finally coming to an end? Who knows. Its hard to make a case for US bonds when the spread between the US and ROW is closing. How about the MBS players? Convexity problems? Maybe they need run some more monte carlo simulations. Note to all math genui. When the mortgage balloons from xxx trillion of debt to xxxxxxx trillion in 4 years no model is going to be able to predict the outcome.
Housing is done 3 percent. Banks 1.2 percent. Reits crushed 3.5
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