Introduction
“The US economy is stronger than what we previously thought. You certainly see that in the blow up job report” said FOMC voting Committee member Bullard in a CNBC interview last week, summarizing the last flow of US data, and the last move in US rates.
We will not dedicate too much (virtual) ink to detailing what future rate markets have already taken notice of, and will instead extrapolate recent trends in data and policy and their potential implications on asset prices. We will then make a detour via Japan, where the Bank of Japan is experimenting with new restrictions on 10yr JGB short-selling a bit more than a month before Governor Kuroda’s hand over to his successor. We will then leave narratives...