US EditionBREAKING NEWS: BOJ prepared to boost gov't bond buying when necessary: chief Ueda
- Wednesday, Griffin pointed to Japan's bond sell-off as investors balked at food tax delays and warned it could serve as an explicit warning for the United States, citing his quote: "I actually think there's an explicit warning that if your fiscal house is not in order, the bond vigilantes can come out and retract their price."
- In recent years, worries about growing deficits have pushed long-end yields higher, with stocks and bonds moving in tandem, Griffin noted.
- So-Called bond vigilantes drive selling pressure, Griffin said, `If US Treasurys are viewed as being at risk because the United States is not seen as being creditworthy, then bonds will move together in price.`
- As a result, the hedge function of bonds is strained as bond and stock prices move together in recent years, and Griffin called this trend particularly troubling for the United States' ability to make good on its debt.
- Lawmakers were given a direct warning to act as Griffin told the House and Senate the episode is a message to get the fiscal house in order, flagging a sharp sell-off tied to a potential pause on food taxes.
15 Articles
15 Articles
focus.de
finanzen100.deThe interest rates on Japan's government bonds have been rising rapidly since the beginning of the week, because their owners want to sell them as quickly as possible. The government's policy is to blame, which will probably mean new debts.
Ken Griffin says Japan's bond sell-off is a warning sign that the US needs to get its finances in shape
CHANDAN KHANNA/AFP via Getty ImagesCitadel chief Ken Griffin thinks the US got a big warning from Japan's bond market this week.Japanese bond yields hit a record high as investors fretted over the nation's growing deficit.The same dynamic could play out in the US if it doesn't get its finances in order, he said.The bond vigilantes could make a comeback soon. That's the big message Citadel CEO Ken Griffin thinks the US got this week.Speaking to B…
Japan Blows up American Stocks...
Japan’s new Prime Minister triggered a bond sell-off by raising interest rates, causing global markets to crash. This hit the yen carry trade hard, forcing investors to rush out and crash U.S. stocks. Japan’s massive debt and economic problems risk spreading more financial chaos worldwide. ORIGINAL LINK: https://www.profstonge.com/p/japan-blows-up-american-stocks?utm_medium=web&triedRedirect=true
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