HALISTER1: Long JPY Attractive in Next 3-6 Months: Columbia Threadneedle

Long JPY Attractive in Next 3-6 Months: Columbia Threadneedle

(Bloomberg) -- The yen could strengthen from its current ~110 per dollar rate to 105 in 3-6 months, 100 in 6 months, Ed Al-Hussainy, senior analyst on the global rates and currency team at Columbia Threadneedle, said in an interview.
  • Potential for “short squeeze” on yen because bearish positioning is “stretched”
  • Sees convergence between U.S. and E.U. rates as gilts and bunds are “overvalued”
  • Sees 10-year USTs reaching 2%, bunds 1% in 12-18 months
  • Long EM, high-carry currency basket: MXN, TRY, ZAR, PEN, INR, RUB
To contact the reporters on this story: Anna Windemuth in New York at awindemuth1@bloomberg.net; Lananh Nguyen in New York at lnguyen35@bloomberg.net To contact the editors responsible for this story: Boris Korby at bkorby1@bloomberg.net Mark Tannenbaum

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Ed Al-Hussainy (Columbia Management Investment Advisers LLC)

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