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Investors manoeuvre, warily, for long-shot BOJ policy move

From a rising yen to debt market derivatives, market signals reveal how investors are going for some cheap but fail-safe options to make money on the off chance the Bank of Japan surprises them with a.

Analysis-Investors manoeuvre, warily, for long-shot BOJ policy move

From a rising yen to debt market derivatives, market signals reveal how investors are going for some cheap but fail-safe options to make money on the off chance the Bank of Japan surprises them with a tweak to policy settings this week. The trading pattern in the run-up to the BOJ's two-day meeting, which ends on Friday, is familiar: Investors have been betting all year the BOJ will finally relent on its stubborn ultra-easy monetary stance and adjust its yield curve control. But this time, wary of repeated past disappointments, many investors are avoiding direct and potentially expensive bets such as short-selling Japanese government bonds (JGBs), a trade often referred to as the "widow-maker" for the crushing losses it inevitably generated.

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