Investors prime for BOJ by shorting the short end of bonds

SINGAPORE/HONG KONG, June 21 (Reuters) – As global fund managers and other investors gird for the Bank of Japan’s stated gradual exit from ultra-easy policy settings, they are short-selling the shortest tenor government bonds and positioning for an even weaker yen. Since ending its unorthodox negative interest rates policy in March, the Bank of Japan (BOJ) has left markets guessing on further policy tightening. It dropped more definite hints after a policy review last week, pledging to gradually reduce its massive purchases of Japanese government bonds (JGBs) over the next two years and possibly raise rates as early as July….