Yen Plunges On Yet Another Strawman Headline About Stimulus, Then Surges On Denial

from Zero Hedge

Update: Well that didn’t last long…

Livesquawk: Japan Ministry of Finance say it is not true they are considering 50yr bonds – debunking earlier WSJ story –Rtrs

[…] Who could have seen that denial coming?

[…] USDJPY just spiked back over 106.00 after headlines suggesting Japanese PM Shinzo Abe will unveil new stimulus as soon as today. News reports on 27t yen fiscal stimulus and issuance of 50-year bond, both spur yen selling, says David Lu, HK-based director at NBC Financial Markets Asia. We suspect there will be some disappointment after the algos are finished as FNN reports the package will include 13t yen of low-interest loans (so a smaller helicopter than expected) and besides, it’s not like the Japanese are suffering from rates being too high.

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