Chapter 05 · The Yen Carry Bible · v1.0 Beyond slogans Reading the BOJ as a slogan machine is how desks get trapped. The reaction function runs through wages, services inflation, real rates, and the credibility of communication. A shift in expected Japanese real rates reprices the entire funding stack — even if the policy rate move looks 'small' in absolute terms. Wages, inflation, real rates A shift in expected Japanese real rates reprices the entire funding stack — even if the policy rate move looks 'small' in absolute terms. Communication and credibility Communication regimes matter: guidance, YCC history, and the market's belief about what the BOJ will tolerate in FX and inflation determine hedging behavior
本月免费剩余 3/3
Ask ZChat · save an investment note
The BOJ Reaction Function
Reading the BOJ as a slogan machine is how desks get trapped. The reaction function runs through wages, services inflation, real rates, and the credibility of communication.
Related concepts
Further reading
- MACRO RESEARCHStrait of Hormuz Shipping Crisis: Oil Prices and the Midterm DeadlineIran’s tanker attacks hit a wartime high after Trump ruled out strikes before November 3
- MACRO RESEARCHOil Prices, the Strait of Hormuz and the Midterms: How to Trade Brent Calendar SpreadsThe Saudi bypass pipeline should be back to full flow around election week, which is when Washington’s reported timeline for renewed strikes on Iran begins, and the Brent futures c
- MACRO RESEARCHHow to Trade Economic Data: Reading JOLTS, PMI and Payrolls Like a Macro Trader (Part 1)Market reaction to economic releases is driven by surprise magnitude, calendar timing, and the specific Fed-focused component, rendering headline numbers virtually useless.
- MACRO RESEARCHHORMUZ IS THE BEST LEVERAGE ON EARTHIt only takes one low-cost attack to damage trillions.
- MACRO RESEARCHTHE HORMUZ TRAP | Why the world is running out of maritime chokepointsWhy the world is running out of maritime chokepoints
- MACRO RESEARCHJAPAN'S NEW POLICY THE GRAND BLUEPRINTTakaichi’s ¥370 Trillion Gambit — How Japan Went From Passively Accepting a Weak Yen to Actively Repricing Capital, Currency, Labor, and Corporate Equity by State Design