Market Depth Weston Nakamura | Blockworks

Following the initial launch of the Market Depth podcast and a few episodes in, Weston Nakamura unveils his new “trading jacket,” and explains the concept of how the making of each episode of Market Depth is approached. Weston then discusses Japan’s February CPI reading, which came down sharply for the first decline in 5 months - and the impact of the governments energy subsidies on inflation.
Finally, Weston examines bond flow data to follow up on his previous episodes explaining the record volatility in rates, as well as price action drivers of the yen.
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Disclaimer: Nothing discussed on Market Depth should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.

Heading into a very consequential March FOMC meeting later today, Weston Nakamura examines market positioning - particularly focusing on what the real-world market implications from extreme and unprecedented levels of rate volatility are. Macro hedge funds such as Jupiter are seeing their worst performances ever, while Graticule Asia has shut down as a result of the erratic markets of late.

Weston also flags Hong Kong’s HIBOR rate spike, and the Turkish Lira breaking into new lows. Finally, Weston discusses FOMC market expectations, and his views on the post-Fed meeting trading environment.
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Disclaimer: Nothing discussed on Market Depth should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.

Market Depth: Monday March 20, 2023
After a historic and last-minute deal of UBS to take over Credit Suisse, Weston Nakamura examines the first market reaction out of Asia. With rates continuing to fall alongside Credit Suisse AT1 bondholders getting wiped out, it is difficult to discern if macro or bottom up forces may be influencing global bank shares' directional movements. Weston therefore takes a look at specifically HSBC and Standard Chartered stocks listed in Hong Kong for a market read on the weekend's developments.
Weston also points to JPY futures as a contributing factor for gold to break above $2000.

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Follow Market Depth On Spotify: https://spoti.fi/3mVTs9U
Follow Market Depth On Apple Podcasts: https://apple.co/40dA2vm
Follow Weston: https://twitter.com/acrossthespread
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Disclaimer: Nothing discussed on Market Depth should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.

Market Depth: Friday March 17, 2023
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Amidst turmoil in the US regional bank sector, Weston Nakamura takes a look back at a week of highly unusual (if not record setting) price swings across asset classes, including non-US megacap banks indices in Europe and Japan, Credit Suisse shares, bonds and CDS divergences, and DM rates markets - specifically US 2Y Treasury yields, German 2Y bund yields, and Japan 10Y JGB yields.

Weston ties all of the erratic movements occurring in assets that should otherwise be liquid and stable back to a common theme - years of heavy-handed central bank interventions that have altered, if not damaged, market functioning and stability, resulting in volatility and illiquidity that only exposes itself in real time moments of crisis.

For the most extreme example of this dynamic currently underway, Weston points towards the JGB market, for which the Bank of Japan's unprecedented intervention has killed market functioning, as a potential look into the future for the other sovereign rate markets.

For further insights- Weston discusses the Bank of Japan and their impact on the JGB market in depth in the previous episode of Market Depth, as well as On The Margin with Michael Ippolito.
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Follow Market Depth On Spotify: https://spoti.fi/3mVTs9U
Follow Market Depth On Apple Podcasts: https://apple.co/40dA2vm
Follow Weston: https://twitter.com/acrossthespread
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Disclaimer: Nothing discussed on Market Depth should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.

In this debut episode of Market Depth, Tokyo- based Weston Nakamura takes a deep dive look into Haruhiko Kuroda’s decade-long tenure as the Governor of the Bank of Japan, who leaves his post as the most consequential major central banker in the modern era. 
Governor Kuroda was appointed (then re-appointed for a rare second term) by Prime Minister Abe in 2013, specifically to carry out radically aggressive monetary easing measures- for which Kuroda delivered upon from his very first policy meeting with QQE. A decade later, Kuroda certainly has delivered- perhaps even overdelivered on the “easing without backing down” promise by conducting the world’s largest and now increasingly controversial experiment in monetary policy easing: yield curve control.
As Kuroda now hands the keys over to a new governor, the Bank of Japan now owns more than half of the Japanese government bond market, and is capping long term yields at explicit levels by policy, battling market forces that are pushing for a higher yielding environment against a backdrop of inflation at 40 year highs. Despite a 4% CPI reading in Japan, Governor Kuroda’s only regret is that he “was unable to achieve the 2% inflation goal.”
Whether Kuroda had achieved his objectives or not is up for debate. The question is - in the process of attempting to pull Japan out of a deflationary spiral, did Governor Kuroda create a meteoric 500 trillion yen bubble in JGBs? And what happens when he is no longer there to keep the largest bubble in history inflated?
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Disclaimer: Nothing discussed on Market Depth should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.

Introducing Market Depth, hosted by Weston Nakamura, a podcast giving you direct access into the Asia Pacific region. Reporting from Tokyo, Weston provides a unique insight into how the region influences global macro forces driving markets all around the world. With his extensive background at both Goldman Sachs and Jefferies specialising in equity & derivative sales, this is the perfect podcast to cut through the noise and get the key takeaways before your trading day starts.
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Disclaimer: Nothing discussed on Market Depth should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.