Re: -- No Subject --

[Rosser Jr, John Barkley]

     As I mentioned in an earlier post, the likely story to 
watch is the BOJ selling US government securities, of which 
it holds several hundred billions worth.  It is now clear 
that the 12.1 billion sale through the New York Fed the 
other day was very much a coordinated deal.  It not only 
served to prop up the yen, but apparently with the new 
surplus in the US budget, there is now an actual SHORTAGE 
of US government securities in the financial markets.  
Apparently they get used as collateral for all kinds of 
transactions, and there are now not enough.  So, the BOJ's 
sales were most welcome.  No wonder the New York Fed helped 
out.
Barkley Rosser
On Thu, 16 Apr 98 2:37:25 EDT boddhisatva 
<[EMAIL PROTECTED]> wrote:

> 
> 
> 
>               To whom...,
> 
> 
> 
>       Late night reports of official Japanese reaction to the G7
> communique on for-ex make the Japanese mind-set a little clearer.  Either
> they are playing it extremely cute or they are living in a dream world.
> The latter seems more likely.  The communique quite clearly emphasized the
> view that the Yen should be strengthened through Japanese internal
> economic policy. While it left open the possibility of concerted
> intervention, it did so only in the case of imbalances in the market.  The
> Japanese officials, however, emphasized the very small opening left for
> concerted intervention and expressed surprise that Japan's situation was
> the focus of so much discussion.  I fear these guys are living in a
> fantasy where staying the course will produce renewed Japanese economic
> strength.  That seems to include staying the strong Yen course, but the
> BoJ seems to be alone in that effort whether it knows it or not.
> 
> 
> 
>       The Yen was bid to as low as 131/dollar, but moved back up a bit
> to around 130.  It's 2:00 a.m. EST and the trend on Globex has been
> bearish since I first checked it at midnight, however no break-out is
> evident at the moment and I don't know what the actual exchange rate was
> at midnight since I was getting the June future.  Reuters reported of a
> poll of economists which was interesting, showing a bearish trend on the
> Yen despite BoJ intervention and suggesting that Yen outflows could offset
> downward pressure on dollar/Yen caused by the current account deficit.  It
> is a brave new world in Tokyo. 
> 
> 
> 
> 
> 
> 
>       peace
> 
> 

-- 
Rosser Jr, John Barkley
[EMAIL PROTECTED]