RORSCHACH TEST OF THE DAY: Japanese Bonds Edition

rorschach

Photo: http://en.wikipedia.org/wiki/Rorschach_test

Welcome to our first (and last?) RORSCHACH TEST OF THE DAY. Let’s get right to it.Japanese Government Bonds are seeing lower yields, and the yen is rallying, following the victory of the anti-stimulus PM last night.

What’s the reason for the market action?

A) Investors feel better about Japan’s fiscal situation with a PM who’s for less spending.

B) Investors are more dour about Japan’s growth prospects with a PM who’s for less spending, and thus are buying bonds.

C) People who try to make assumptions based on one day’s price action are idiots.

Put your answer in the comments, and explain.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.