Founders: Goldman Trader says "Stay Short Japan Bonds"

Japan Kills YCC

• Goldman in no uncertain terms tells institutional clients to stay short JGBs Sunday Night

• They declare (correctly) that the BOJ effectively scrapped their YCC.

• Barclays explains in more detail how they “hollowed it out”.. included at bottom

• But the GS note is a must read if you are an FX or Gold person.

Note: We rarely see this type of conviction….. we are NOT trading on this. The outcome will be very instructive to watch however