Yen bulls can buy JGB's, BoJ to ease further on string Yen? - BBH

Analysts at Brown Brothers Harriman noted the relationship between the Yen and JGB market.

Key Quotes:

"Given that many fund managers are barred from taking naked currency positions, a bullish yen view can be expressed by buying Japanese government bonds. "

"Foreigners have been net buyers of JGBs for nine consecutive weeks, after selling in March. "

"At the same time, others may conclude that the yen's strength (even if actually dollar weakness) may increase the likelihood of additional easing by the BOJ."

"This may attract some foreign buyers or JGBs on ideas that yields still have room to fall."