So the BOJ think they will exit its QQE (easing) program

Chris Weston

Pepperstone

So the BOJ think they will exit its QQE (easing) program? - If anyone can tell me who is going to buy Japanese govt debt at 60bp then please let me know. So then if the world demands yields closer to other OECD nations (say 2.5%) this will cripple Japan. Why on earth would you lend funds to the Japanese government for a 0.6% expected return over 10 years? When they shell out about 21% of govt revenue on the interest on its current debt (with yields at 60bp), then payments on interest when yields are at 2.5% should be closer to 90%!. How does this end well for the BoJ? How do they exit bond buying? I am struggling to work it out - (VIEW LINK)


Chris Weston
Head of Research
Pepperstone

Highly accomplished financial markets professional, with experience at a number of top-tier global institutions on both the buy and sell-side. A natural communicator with a strong ability to analyse macro-economic trends, capital flows and market...

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