JGBS: Bear-Steepener Extends, 30YY Hits 3.20%, BOJ Noguchi Talks Tomorrow
May-21 05:14
JGB futures are weaker, -8 compared to the settlement levels, after dealing in a relatively narrow range in today’s Tokyo session.
- (Financial Times) -- 'Yields on the longest-dated Japanese government bonds surged to record highs on Tuesday after a dismal debt auction added to investor fears of a lack of demand."
- (Reuters) - "BOJ urged to boost bond buying in wake of spike in super-long yields " http://reut.rs/3S9aspw
- Cash US tsys have extended yesterday's bear-steepener, with yields 1-3bps higher, in today's Asia-Pac session.
- Cash JGBs have bear-steepened across benchmarks, with yields flat to 7bps higher. The benchmark 20-year yield is 3.5bps higher at 2.571% after yesterday's poor auction.
- The JGB 30-year yield had extended higher earlier to print 3.204% up 0.09 on the day. This is starting to look pretty ugly. At what level do the Japanese Lifers sell US assets and repatriate funds to buy this? This has implications for both US stocks and bonds.
- Swap rates are 1bp lower to 9bps higher, with a steeper curve.
- Tomorrow, the local calendar will see Jibun Bank PMIs (P), Core Machine Orders and International Investment Flow data alongside a speech from BOJ Board Noguchi in Miyazaki.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
CHINA: Country Wrap: Loan Prime Rates on Hold
Apr-21 05:11
- Chinese plastics factories that depend on ethane gas that is predominantly imported from the US are may be forced to limit production as the world’s two largest economies go head to head in a trade war. (source BBG)
- The benchmark lending rates in China remained unchanged this month at 3.1% for the 1-year and 3.6% for the 5-year as officials patiently wait to see how the trade war plays out across the economy before they alter policy. (source DJ)
- The Hang Seng rose +1.6% today for one of the biggest gains in the region, with the CSI 300 not as euphoric rising just +0.15%, Shanghai Comp +.30% and Shenzhen Comp +0.99%.
- Yuan Reference Rate at 7.2055 Per USD; Estimate 7.2926
- China’s 10YR rose +1bp today to be at 1.66%
GOLD: Gold Surges as USD Struggles
Apr-21 04:55
- Playing catch up after a closed period Friday, gold jumped in early trading in the Asia morning to reach new all-time highs.
- Opening at US$3334.44, gold has touched a new high of $3,376.03.
- This takes gold year to date gains in excess of 28% and is causing forecasters globally to reset their year end expectations.
- Gold sits above all major moving averages, with the nearest the 20-day EMA of $3,158.88
- A strong day for China bourses yet mixed throughout the region despite the weaker USD.
ASIA STOCKS: Strong Day for China as Hang Seng Leads.
Apr-21 04:49
A strong day across the region for some bourses as the USD weakened on Federal Reserve uncertainty with the Hang Seng leading the way.
With all major bourses enjoying strong gains, Taiwan’s TAIEX was an outlier falling -1.65 as Taiwan Semiconductor Manufacturing Co. shares drop as much as -2.1% after the company’s Arizona subsidiary posted a loss of NT$14.3 billion last year.
South Korea’s presidential-election front-runner, vowed to lift corporate governance standards and curb malpractices such as stock manipulation in a bid to boost the allure of the nation’s $1.6 trillion stock market.
- In China the Hang Seng rose +1.6% today for one of the biggest gains in the region, with the CSI 300 not as euphoric rising just +0.15%, Shanghai Comp +.30% and Shenzhen Comp +0.99%.
- The KOSPI is having as good a start to the trading week trading flat to where it started, despite the comments from the election front runner.
- Malaysia’s FTSE Malaysia KLCI fell -0.18% today.
- Indonesia’s Jakarta Composite fell -0.26%
- In Singapore the FTSE Straits Times was a standout rising +1.00%
- India’s NIFTY 50 has had a strong start to Monday rising +0.75%
