The Bank of Japan Goes to a 31-Year High Today, and the Carry Moves Thirty Basis Points
The Bank of Japan is expected to raise to 1.25% in about three hours — a level Japan has not seen since 1995.
How priced is it? 80% on the swap market, 97% of economists, and one publisher's flat 100%. Those are three different questions, not three estimates. And four hikes over the next year compress the carry against the dollar by about thirty basis points out of two hundred and eighty-seven.