CNBC's Rick Santelli and Tres Knippa, Kenai Capital Management owner, breaks down Japanese government bonds and provides insight on investing in emerging markets.
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Geoffrey Yu, foreign exchange strategist at UBS, says that while he is still long dollar-yen, investors should be very cautious on Japanese inflation as it could turn into an "absolute rout."
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Hans Redeker, global head of foreign exchange strategy at Morgan Stanley, tells CNBC that the bank of England has made it clear they differentiate between economic activity and the output gap.
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Given the Swiss National Bank's pegging or linking their currency to the EUR at 1.2000 (+10% from spot), the market is now starting to believe there is a possibility that the Bank of Japan will do something similar with the Japanese yen.
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The Japanese government's unconventional plans to minimize the effect of a rising yen on its businesses did not stop the currency from rising against the dollar again Wednesday.
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The Fed's beige book on economic conditions showed growth slowing in some U.S. regions as food and energy prices rose. But it was the rippling effects from the Japanese earthquake that got the most blame.
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China is stepping up buying in Japanese government bonds, particularly notes with less than one year to maturity, market players say, in what looks like a fresh drive to diversify its ballooning foreign reserves.
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