Fed Hawks Spur Japan Bond Buying as Swaps Turn World Upside Down

  • Dollar holders are getting deeper discounts to borrow yen
  • Odds of higher U.S. interest rates by July climb above 50%

Fed Hawks Spur Japan Bond Buying Spree

Hawkish comments from the U.S. Federal Reserve are making it more lucrative for global funds to buy negative-yielding Japanese government bonds -- after currency swaps have worked their magic.

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