Pimco, which runs the world’s biggest bond fund, said on its Web site that the central bank may buy “unlimited amounts” of longer-maturity debt as it tries to counter falling prices in the economy. The BOJ already purchases 1.8 trillion yen ($19 billion) of bonds a month and it has cut its benchmark interest rate to 0.1 percent.
Infinite QE not only in the US but also Japan. The Yen, following weeks of bullish COT F&O inflows, continues strengthen against the dollar despite the BOJ's efforts. The dollar has replaced the Yen as the currency of choice for the carry trade.
Yen and the Commercial Traders COT Futures and Options Stochastic Weighted Average of Net Long As A % of Open Interest:
Yen ETF (FXY):
Source: bloomberg.com
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