Yields are still currently low based on the long-term regression trend.
What does it imply for RMB bonds if we expect a rate increase in the mid-term (independently of exchange rate movements)?
- Avoid long-duration RMB government bonds,
- Prefer short duration or floating-rate ones.
Despite being undervalued based on PPP, the Japanese Yen has been depreciating for a few weeks due (probably) to a risk-on environment making the Yen as a safe-haven less attractive.
Being still undervalued, the Yen might be a cheap hedge against market downturns. Moreover, it seems to have reversed its downward trend and an appreciation against the Euro is now...
As the GDXJ/GDX ratio broke a major resistance, the probability for junior miners to outperform senior ones has strongly increased.
Anyway, it is a strong bullish signal for precious metals and the precious metals industry.
AMEX:GDX
AMEX:GDXJ
