Excerpt from: Bonds and Interest Rates CFDs and Spread Bets
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| October 03, 2006 | | Spread bets and CFDs on JPY/AUD trading pair revealed through bonds | Japanese investors hold Australian bonds set to mature throughout the month. This means that Aussie bonds will be converted into yen denominations, helping boost the yen against the Australian dollar. Spread bets and contracts for differences should be profitable when favouring the yen by the end of the month in the JPY/AUD trading pair. Bloomberg reports on the "uridashi" bonds:
Borrowers will redeem A$1.8 billion ($1.3 billion) of so-
called uridashi -- Australian debt targeted at individual
Japanese investors -- in October. With no new issuance planned,
those funds may go back to Japan, said Jonathan Cavenagh, a
currency strategist at Westpac Banking Corp. A total of A$4.3
billion of uridashi maturities are scheduled this quarter.
``This will see the Australian dollar under pressure against
the yen,'' Sydney-based Cavenagh said. ``We really haven't seen
any issuance on the screens to offset these large redemptions.'' | | |
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