SOUTH KOREA: Trade Data Strong in Face Tariffs
Aug-01 00:16
- July exports for South Korea beat expectations despite the ongoing threat of tariffs from the US.
- Exports rose +5.9% in July beating expectations of +5.1% and an increase in +4.3% in June.
- The July result are likely reflective of ongoing impacts of exporters looking to ship goods prior to the imposition of US tariffs, now set at 15%.
- Imports rose a mere 0.7%, below expectations of 2.0% and down from June 3.3%.
- The resulting trade balance was below expectations at US$6.6bn and down from the June revised amount of $9.08bn.
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MNI EXCLUSIVE: MNI Discusses RBA's International Outlook
Jul-02 00:14
MNI discusses the RBA's international outlook. On MNI Policy MainWire now, for more details please contact sales@marketnews.com.
US TSYS: Cash Open
Jul-02 00:07
TYU5 is trading 111-29+, up 0-02 from its close.
- The US 2-year yield opens around 3.768%, down a little from its close.
- The US 10-year yield opens around 4.24%, slightly lower from its close.
- " U.S. Treasury Secretary Scott Bessent said on Tuesday he believes the Federal Reserve could lower interest rates by September. "I think that the criteria is that tariffs were not inflationary. If they're going to follow that criteria, I think that they could do it sooner than then, but certainly by September," Bessent said.”(RTRS)
- MNI US DATA: Another JOLTS Report Ruling Out Sharper Labor Deterioration. The JOLTS report for May saw stronger than expected job openings whilst quit and hiring rates plus the level of layoffs all pointed to broad stabilization in the labor market rather than showing signs of further moderation.
- The 10-year yield has seen a bounce after a very strong move lower with some paring back of longs. Any bounce back to the 4.35% area would offer buyers a decent level to add again.
- Data/Events: MBA Mortgage Applications, ADP, Challenger Job Cuts
JGBS: Futures Stronger Overnight, Japan Trade Deal By July 9 Unlikely
Jul-01 23:43
In post-Tokyo trade, JGB futures closed stronger, +8 compared to settlement levels, after US tsys finished Tuesday with a twist-flattening, with yields 5bps higher to 1bp lower.
- The JOLTS report for May saw stronger-than-expected job openings. All pointed to broad stabilisation in the labour market rather than showing signs of further moderation.
- Wednesday's US data focus is on MBA Mortgage Applications at 0700ET, Challenger Jobs at 0730ET followed by ADP Employment Change at 0815ET. No Fed scheduled Fed speakers. Thursday is a heavy data day with NFP added due to Independence Day holiday closure on Friday.
- (MNI) While headline inflation remains above 2%, underlying inflation is still consistently below that level and will be key for future policy rate decisions, BOJ Governor Kazuo Ueda said Tuesday.
- "Further rate hikes depend on data developments, particularly the three underlying components of underlying inflation," Ueda told the ECB's central banking forum at Sintra. Ueda said the BOJ's current policy rate was likely below neutral, but accepted that the BOJ's analysis of the level of "r*" produced a very wide range of estimates.
- Bloomberg headlines: "DOUBT WE'LL HAVE DEAL WITH JAPAN", "ON JULY 9 DEADLINE: NOT THINKING ABOUT EXTENDING" while "SUGGESTS JAPAN COULD PAY 30% OR 35% TARIFF".
- Today, the local calendar will see Monetary Base data.
