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China’s record decline in exports is tearing its away across the east China Sea … to Japan.
Japan is now see its sovereign yields collapsing to record lows as investors swim to safety.
The Japanese sovereign yield curve is now negative for maturities up to <15 years.
And it is considerably lower than September 29, 1990 when the Japanese sovereign curve was upward sloping until the 7 year maturity, then BAM, downward sloping from 8 years to 30 years.
Unless, of course, the yield curve in 1990 was forecasting the attack by Godzilla from which Japan has never recovered.
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