Japan's Long End Just Snapped – Gold Should Be Watching
With love from Japan
Japan 30 year closed above the magical 3.3%. This matters.
Source: LSEG Workspace
Cheap skiing coming up
Japanese long bonds keep sliding as markets brace for a bigger-than-expected supplementary budget from the new Takaichi administration later this week. JPY has continued to weaken as well.
Source: LSEG Workspace
JPY technicals
JPY broke above the big negative trend line a few sessions ago. The golden cross is in place (think inverse for the JPY as it gets weaker). The cross doesn't always work, but when it works it tends to go for it.
Source: LSEG Workspace
Gold - you watching this?
Short term gap between Japanese long end and gold getting rather wide. Gold remains "heavy" given the extreme speculation we saw during the melt up earlier this autumn, but the move in rates is a positive for gold, ceteris paribus.
Source: LSEG Workspace
Haunted
Still relatively little talk about the aggressive move in the Japanese long end... but looks like VIX has picked up some of the "signal".
