(Bloomberg) -- Bank of America Corp. has reversed
its call to buy the Australian dollar against the yen, saying it
will now drop as rising global bond yields slow economic growth
and hurt investors' appetite for the currency.
The second-biggest U.S. bank is betting investors will
unwind so-called carry trades, in which they borrow in Japan to
buy Australia's higher-yielding assets. Bank of America changed
its call on the currencies after U.S. 10-Year Treasury yields
surged to the highest in five years, sending stock markets in
the U.S. and Asia lower.
Read more at Bloomberg Bonds News
its call to buy the Australian dollar against the yen, saying it
will now drop as rising global bond yields slow economic growth
and hurt investors' appetite for the currency.
The second-biggest U.S. bank is betting investors will
unwind so-called carry trades, in which they borrow in Japan to
buy Australia's higher-yielding assets. Bank of America changed
its call on the currencies after U.S. 10-Year Treasury yields
surged to the highest in five years, sending stock markets in
the U.S. and Asia lower.
Read more at Bloomberg Bonds News
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