BOJ: Board Member Masu Notes That Rate Hike Is "Getting Closer"
BOJ board member Masu tells Nikkei that the decision to raise interest rates is "getting closer". He notes that "I can't say what month it'll be, but in terms of distance, we're close".
Masu also provided comments to Jiji in an interview released around an hour ago (see here). Some excerpts from that interview:
- The initial momentum of next year's "shunto" spring labor-management wage negotiations, a key factor for the central bank's possible rate hike decision, is expected to appear "earlier than March,"
- As to the BoJ's next policymaking meeting on Dec. 18-19, he said the bank will make a "comprehensive judgment" on whether to raise its policy interest rate while pointing out, "We would have to consider (refraining from a hike) if particularly bad data come out."
No visible market impact as the latest headlines crossed on Bloomberg. OIS markets assign a ~15% implied probability of a rate hike in December, rising to almost 60% through January (source: Bloomberg WIRP).
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US TSYS/SUPPLY: Preview 20Y Bond Auction
Tsy futures remain modestly weaker (TYZ5 at 113-22, -2 vs. 113-19.5 low) ahead of the $13B 20Y bond auction re-open (912810UN6) at 1300ET, WI is currently at 4.522%, 9.1bp rich to last month's stop. Today's results will be available shortly after the competitive auctions closes at 1300ET.
- September auction recap: Treasury futures dipped slightly (TYZ5 113-18) after the $13B 20Y Bond auction re-open (912810UL0) reopen traded through, drawing a high yield of 4.613% vs WI yield of 4.615%; Bid-to-cover: 2.74, rebounding from a lower 2.54 in Aug after 2.79 in Jul.
- Peripheral stats: indirect take-up at 64.6% vs. 60.6% prior; direct bidder take-up 27.9% from 21.9% prior; primary dealer take-up of 7.5%.
FED: US TSY 19Y-10M BOND AUCTION: NON-COMP BIDS $66 MLN FROM $13.000 BLN TOTAL
- US TSY 19Y-10M BOND AUCTION: NON-COMP BIDS $66 MLN FROM $13.000 BLN TOTAL
US TSYS: Risk-Off on China Curbs Chatter
- Another risk-off move here as Reuters reports the US considers curbs on China exports "made with US software".
TYZ5 pares losses: trades up to 113-26 before slipping back to -23. - Stocks gap lower but are paring move just as quickly:
- DJIA down 244.78 points (-0.52%) at 46805.39
- S&P E-Mini Future down 44 points (-0.65%) at 6744
- Nasdaq down 261.7 points (-1.1%) at 22741.78
