Australian bonds slump after U.S.-China trade tension disturbs investors once again; Sep labour report disappoints
Swedish jobless rate remains unchanged at 7.4 pct in September, wage growth unlikely to pick up soon
Australia’s rise in September employment remains smallest in seven months; jobless rate likely to drift higher in near-term
China likely to maintain full year growth at 6.0 pct in 2019, unless GDP growth falls below 5.5 pct y/y in Q4, says ANZ Research
Fundamental Evaluation Series: USD/JPY vs. 2-year yield spread
The above chart shows the relation between the 2-year bond spread (U.S. - Japan) and USD/JPY exchange rate.
Brief background (2012-2016):
This one pair has been at odds with yield divergence throughout early 2016 as the yen benefited from risk aversion and due to market participants’ doubts on BoJ’s abilities to ease policies further.
Yield spread (2016-19)