RATINGS: Fitch Affirms Japan At A; Outlook Stable
Jan-23 09:06
Fitch Affirms Japan at A; Outlook Stable
- The rating agency notes that "Japan's 'A' ratings balance the strengths of an advanced, wealthy economy with correspondingly robust governance standards and public institutions, against weak medium-term growth prospects and very high public debt. The central bank's monetary strategy and broad domestic investor base continue to support relatively low bond yields and the government's financing capacity, despite gradual monetary policy tightening. Persistent current account surpluses, a large external asset position and the yen's reserve currency status also support the rating.
- Negative risks include "expectations of a persistent, significant rise in the government debt/GDP ratio over the medium term, for example, due to pronounced and sustained loosening of fiscal policy, or higher real interest rates without stronger economic growth."
- Click for full report.
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CROSS ASSET: MONTH END EXTENSION (update)
Dec-24 08:21
This should be a non event for Year End, they are small, and only the lower liquidity could get Govies moving, but unlikely, as investors turn their attention to 2025.
Bloomberg Bonds:
- US Tsys: +0.07yr (small, average).
- EU Govies: +0.04yr (small).
- UK Govies: -0.02yr (non event).
MS Bonds:
- US Tsys: +0.05yr (small).
- EU Govies: +0.03yr (small).
- UK Govies: To contract (non event).
Barclays FX:
- Their Quarter rebalancing model only shows a Weak Dollar Buying signal.
GILTS: Opens within the Calls
Dec-24 08:09
- A slightly higher open for Gilt, was just down 2 ticks at 92.46 vs close, a small wide range of 16 ticks on the Open, but as expected very poor volumes as also seen in the Sonia Strip.
- In Terms of Technical, support is at 91.87, while resistance moves down to 92.92.
GILTS: Opening calls
Dec-24 07:57
Gilt Calls will be taken from Tnotes, with Europe closed, 92.40, would be 8 ticks down.
