“Crazy Things” Are Happening In The Japanese Bond Market | Weston Nakamura
Check out Weston Nakamura’s new show, Market Depth (First episode airs on Wednesday March 15):
Spotify: https://spoti.fi/3YMXoHm
Apple: https://apple.co/3ytqwZ8
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Today marks the end of an era for the Bank of Japan and global macro writ large, as Haruhiko Kuroda held his final policy meeting as governor of the Bank of Japan for March 2023, leaving his controversial Yield Curve Control policy unchanged, and maintaining a highly dovish stance as he exits. Governor Kuroda held his final press conference in which his only regret was that he was “unable to achieve a sustained 2% inflation rate” in Japan- despite a backdrop of Japan’s core CPI currently double that of the 2% objective, and many market participants and pundits calling for a final signature BOJ-shock for this meeting.
Jack Farley welcomes back Weston Nakamura again for a third consecutive BOJ policy meeting review to discuss the deteriorating state of market dysfunction and the warped yield curve amidst the Bank of Japan’s unprecedented scale of continued easing. They also review Governor Kuroda’s history-shaping unprecedented tenure, as well as the incoming new Bank of Japan Governor Ueda, and the behind-the-scenes scramble to find who Weston feels is a disaster of a pick for the post-Kurodanomics era, using references from the hit-series Breaking Bad for character context.
Today also marks the beginning of another era, in which Tokyo-based derivatives trader and financial markets content creator Weston Nakamura officially joins Blockworks Macro to host a brand new podcast called Market Depth - in which Weston provides critical cross-asset market commentary and insights from Asia- where market activity and policy developments are having ever greater impact upon the global economy and market landscape. Market Depth debuts on Wednesday March 15th 2023, so be sure to follow the podcast on your favorite app, and subscribe to Blockworks Macro YouTube so that you don’t miss an episode!
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Timestamps:
(00:00) Introduction
(10:05) Kuroda (Departing BOJ Governor) As Gus Fring
(13:19) Kazuo Ueda (Incoming BOJ Governor)
(18:09) Frankenstein Policy
(23:26) Japanese Inflation
(27:45) Bank Stocks Fall In Japan
(29:54) The Fall of Silicon Valley Bank
(36:37) Liquidity
(43:04) Consequences For Japanese Yen
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Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.