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HSBC: Wave Goodbye to the Widowmaker — Japanese Yields Are Technically Poised To Explode

A reprieve for long-suffering shorts.
A pedestrian crosses a road while traffic drives past the Bank of Japan headquarters in Tokyo, Japan.
Photographer: Kiyoshi Ota/Bloomberg

If HSBC Holdings Plc's Head of Technical Analysis Murray Gunn is right, we're in for the death of the Widowmaker making widows.

A bet against Japanese bonds — in light of the nation's elevated indebtedness and extraordinary monetary stimulus deployed in an effort to defeat deflation — has been dubbed the 'widowmaker' trade for a rather self-evident reason: it hasn't worked for years.