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ProShares Ultra Yen (NYSEARCA:YCL - Get Free Report) was the target of a large decrease in short interest in December. As of December 15th, there was short interest totaling 31,377 shares, a decrease of 35.5% from the November 30th total of 48,629 shares. Based on an average daily volume of 47,737 shares, the days-to-cover ratio
The “real” policy rate is massively negative, with the new policy rate of 0.25% far below Core CPI of 2.6%. When QT reaches about ¥3 trillion per month in 2026, it would represent a reduction of its JGB holdings of about 0.5% per month.
A weak yen is unlikely to end the positive momentum in Japanese equities. The drivers of the recent rally remain, so we stay overweight Japanese stocks.
The Bank of Japan stood pat on monetary policy today as widely expected. But the market is now paying attention to a more positive tone on the wage and inflation outlook, as well as an upgrade to the FY2024 inflation outlook which lays the groundwork for policy normalisation.
Things were looking tough for the BoJ as recently as this summer, when the country's core CPI bolted north of 4%, far beyond the 2% inflation target that major central banks view as ideal. The Bank of Japan is being reactive to an inflation threat that may very well be in the rearview mirror.
The debate over the future of Japan continues. Because of its small footprint, we often forget the oversized role Japan plays in the global economy.
The IMF, the World Bank, and the United Nations all rank China and Japan as the second and third largest economies on the planet. More of what is occurring in the markets should reflect what is happening in China and Japan which are strongly linked economically.
Marc Chandler and James Foord discuss international markets, economies and currencies. Has the Fed conquered inflation?
SEC filings for YCL aren't indexed yet — common for recently launched funds. Browse the issuer's filings on SEC EDGAR directly.