1---Bank of Japan vows market steps to curb bond turbulence, Reuters
While the government's aggressive policies have sent stocks soaring to 5-1/2-year highs and the yen tumbling to a 4-1/2-year low against the dollar, turmoil in the Japanese government-bond market in recent weeks has cast a cloud over the effectiveness of the BOJ's easing, a key element of "Abenomics" that is showing early signs of lifting the world's third-largest economy from a two-decade funk....
Indeed, Kuroda played down any economic impact from the bond moves, where the benchmark yield recently had its biggest three-day spike in a decade as investors struggle to cope with the overwhelming impact of the BOJ's radical money expansion...
The purchases, running about 7.5 trillion yen a month, were intended to lower rates across the yield curve. But despite the BOJ buying the equivalent of 70 percent of new government-debt issuance, the policy has caused yields to rise erratically on worries that the purchases are distorting the market and sapping liquidity, according to some analysts.
The recent surge in the 10-year JGB yield to a one-year high of 0.92 percent "does not seem to count as a leap in long-term bond yields for Kuroda," she said....
The BOJ unleashed the world's most intense burst of stimulus last month, promising to inject $1.4 trillion into the economy in less than two years to meet its pledge of achieving 2 percent inflation in roughly two years.
Doubts have emerged over whether that time frame is realistic....
Japan's economy expanded at an annualized 3.5 percent in the first quarter, the fastest in a year, offering more evidence that Abe's sweeping stimulus is beginning to work.
But the gains remain tentative. Abenomics got a reality check on Wednesday as April exports grew less than expected and imports surged on expensive energy imports, blowing out the trade deficit to the biggest April gap ever.
A sustained sharp rise in bond yields would hurt corporate capital spending, the soft spot of an otherwise more robust economy, and strain Japan's already tattered finances by boosting the cost of funding its huge debt pile. ($1 = 102.9750 Japanese yen)
2---The Housing Mirage, Time
3--Why Suburban Poverty Is Less Visible and More Insidious, Atlantic
4---So far in 2013, inventory is up 17.7%, cal risk
So far in 2013, inventory is up 17.7%. This is well above the peak percentage increases for 2011 and 2012 and suggests to me that inventory is near the bottom. It now seems likely - at least by this measure - that inventory bottomed early this year (it could still happen early next year).
It is important to remember that inventory is still very low, and is down 15.1% from the same week last year according to Housing Tracker. Once inventory starts to increase (more than seasonal), buyer urgency will wane, and I expect price increases to
5---anne said... economists view (comments section)