Coverage of Bank of Japan governor Masaaki Shirakawa’s speech earlier today focused on his warning on the dangers of a strong yen.
This is odd, as currency intervention is likely to come at the behest not of the Bank of Japan but of the finance ministry. Besides, as Mr Shirakawa notes elsewhere in the speech, Japanese manufacturers are hedged against a rising yen owing to their recent spate of acquisitions of overseas firms.
Of more interest is his warning that the impasse over the US debt ceiling and the eurozone debt crisis could trigger a rise in government bond yields the world over. Read more