Investors short yen and boost risk on BoJ action

Bond managers have added to risk assets, while shorts on the yen hit a five-year high after the Bank of Japan (BoJ) announced radical monetary easing measures.

Earlier this month, the BoJ unveiled plans to almost double its government bond buying programme over the next two years from ¥4trn to ¥7trn (£46bn) in a bid to stave off deflation and kick-start the stagnant economy. Bond managers have welcomed the BoJ’s surprise move, viewing the intervention as a further sign Japan is seeking to debase its currency. The yen hit a four-year low against the dollar of ¥99.01 last week, but bond managers are aggressively shorting the currency in the view it will depreciate further. Hedge fund managers including George Soros are among those betting a...