Everyone hates bonds right now. Perfect—let’s buy this nifty 9.5% payer while it’s discounted! Why the sale? A bearish narrative, of course. In 2023, we have a narrative for everything , after all. Last week, the Bank of Japan (BOJ) announced it is softening “yield control” efforts for 10-year Japanese government bonds (JGBs). Inflation is finally picking up in Japan, and the BOJ is still printing money to buy JGBs. Ironic? Yes . But the BOJ, the money-printing addict, is finally admitting it has a problem. We can think of this as step two of a potential multi-step inflation recovery effort.… Read more