Now You See Why Japanese Government Bonds Are Called 'Widowmakers'

There’s been a lot more talk about the “Japan problem” again lately, with growth flailing, the trade gap going negative, and the likely election of a pro-inflation candidate.

And it’s true that the yen has had a weak several months.

But in finance, the real “widowmaker,” as it’s known, is the Japanese Government Bond, which has crushed many investors who have tried to short it.

And what’s it doing these days? Same as always.

Yields are only continuing to plunge to levels not seen since 2003.

No panic here. Shorts still getting crushed.

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Photo: Tradingeconomics

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