Posted 12/7/2023, 3:44:25 PM
Traders Bet on Bank of Japan Scrapping Negative Rates Soon
- Traders rapidly increasing bets that Bank of Japan will scrap negative interest rates as soon as this month
- Comments from BOJ Governor and deputy fueled speculation of a policy shift
- Strengthened yen and spiked Japanese bond yields show global impact of potential BOJ move
- Key question is exact timing - December, January, or later meetings are all possible
- Ending negative rates could hasten with US rate cuts, but January seen as more likely than December