Mike has posted Mid-Day Minute on MPTrader site: Is the chart of Powershares DB 3x Inver #$%$ Gov Bond ETN (JGBD) Yield reflecting incipient inflation concerns by #$%$anese bond investors?
Of course, inflation is exactly what the BOJ wants, but that does not preclude an investor exodus from the bond market, which by definition will drive up interest rate costs for the #$%$anese government.
Does the relentless climb in JGB Yield suggest that the ability of the BOJ to thwart a powerful climb in rates is questionable? And what about US 10-year Yield, which itself has climbed from 1.62% to as high as 1.99% just in the month of May?
With the US economy-- labor and housing-- showing signs of upside stability and retail holding its own, the combination of upward economic momentum, and a Bernanke reiteration of the need for more QE for some time to come, could underpin the strength in YIELD, especially if it hurdles key resistance at 2.00% on the way to 2.10%.