JPY, USD Funding Correlation Shows Japan Need for USTs: Wedbush
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
People
Scott Skyrm (Wedbush Securities Inc)
To de-activate this alert, click here
To modify this alert, click here
UUID: 7947283
(Bloomberg) -- Correlation between GC/fed funds spread and USD/JPY suggests Japanese investors are a driving factor in the U.S. repo market, Wedbush Securities managing director Scott Skyrm says in note.
- When Japanese institutions are buying USTs, the securities leave the repo market and are locked up in portfolios, creating less collateral and forcing GC rate lower
- As Japanese investors purchase USTs, it leaves them short dollars, so they need to buy USD and sell JPY, driving down the value of the yen vs the dollar
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
People
Scott Skyrm (Wedbush Securities Inc)
To de-activate this alert, click here
To modify this alert, click here
UUID: 7947283