Financial Times (August 10)
“The yen has given up roughly half its gains following the historic joint intervention by the US and Japan, with investors saying the lack of a ‘unified voice’ among central banks lessened its market impact.” The prevailing view is that “the intervention would be unlikely to provide lasting support unless it was accompanied by interest rate rises from the Bank of Japan” and that the intervention might have been more effective with greater international co-operation, specifically involving the ECB, which was not consulted.
Tags: BOJ, Central banks, Co-operation, ECB, Gains, Interest rate, Investors, Japan, Joint intervention, Lasting support, Market impact, U.S., Yen
Wall Street Journal (June 18)
The Japanese yen “has now passed the closely watched 160-per-dollar level at which officials have previously intervened.” There are, however, reasons “why yen interventions this time around may prove trickier.” Even though the BoJ increased “rates to their highest level since 1995 this week,” the interest rate differential persists between Japan and the U.S., and this continues to punish the currency, as does the situation in the Middle East.
Tags: 160-per-dollar, 1995, BOJ, Currency, Differential, Interest rate, Intervened, Interventions, Japan, Middle East, Officials, Punish, Trickier, U.S., Yen
Barron’s (December 16)
“Investors betting on future interest rate moves expect the Fed to cut rates a quarter-point, ending 2024 with a federal-funds rate in the range of 4.25%-4.5%.” That not something bond investors like. They are increasingly “shunning long-term Treasuries,” with the yield on 10-year Treasuries moving beyond the “20-day moving average of 4.293% on Thursday,” before “topping 4.4% during intraday trading on Friday.”
Tags: 10-year Treasuries, 4, 4.293%, Bond investors, Fed, Federal-funds rate, Future, Interest rate, Intraday trading, Investors, Shunning, Yield
Reuters (November 1)
“The U.S. dollar will hold on to its recent strength over coming months on robust domestic economic data and continued scaling back of bets for Federal Reserve interest rate cuts” according to a recent Reuters poll.”
Tags: Coming months, Cuts, Dollar, Economic data, Fed, Interest rate, Poll, Recent strength, Reuters, Robust, Scaling back, U.S.
Reuters (September 28)
“Treasury yields and the dollar fell while the Dow registered a record closing high on Friday as a subdued U.S. inflation report lifted expectations of an outsized interest rate cut at the Federal Reserve’s November policy meeting.” On top of that, “a global stock index also reached a record high, helped by China’s stimulus boost, and European shares posted an all-time high close.”
Tags: China, Dollar, Dow, Europe, Expectations, Fed, Global stock, High, Index, Inflation, Interest rate, Policy meeting, Record, Stimulus, U.S., Yields
Seeking Alpha (September 21)
“It was a historic week for Wall Street, with the benchmark S&P 500… closing above the 5,700 points level for the first time ever. Meanwhile, the blue-chip Dow (DJI) surpassed and ended above the 42,000 points mark for the first time ever. The advance was driven by what was undoubtedly the most important event of the week:” the Fed’s half-point interest rate cut.
Tags: Advance, Benchmark, Blue-chip, Dow, Fed, Half-point, Historic, Interest rate, S&P 500, Wall Street
Washington Post (June 4)
“The European Central Bank on Thursday is almost certain to lower its benchmark interest rate for the first time in nearly five years. The move will come as the Federal Reserve remains on hold with plans to trim U.S. borrowing costs, amid inflation that is proving more stubborn than anticipated.” For the ECB, however, inflation appears to be “less of a problem than the weak growth outlook.”
Tags: Benchmark, Borrowing costs, ECB, Fed, Inflation, Interest rate, Lower, Outlook, Stubborn, U.S., Weak growth
Bloomberg (May 24)
“Overseas issuers sold yen bonds at the fastest pace in five years so far this month, chasing cheap funds before an expected interest rate hike by the Bank of Japan pushes up borrowing costs.”
Tags: BOJ, Borrowing costs, Cheap funds, Expected, Fastest pace, Hike, Interest rate, Overseas issuers, Yen bonds
The Economist (May 4)
“It is easy for investors to lose a fortune in the financial markets—and even easier for governments.” When Japan tried to prop up the yen in 2022, the nation “spent more than $60bn of its foreign-exchange reserves,” but supporting a currency “is expensive and futile.” Since breaking the ¥160/$1 barrier, there are rumors of another intervention. As long as the giant interest rate gap exists with the U.S., Japan would be “wrong to try to prop up the yen.”
Tags: $60bn, ¥160/$1, 2022, Currency, Expensive, Financial markets, Forex, Futile, Governments, Interest rate, Intervention, Investors, Japan, Reserves, Yen
Investment Week (December 7)
“Japanese equities are comfortably multi-asset teams’ most favoured asset class according to our sentiment indicator. Its economy continues to be viewed as being relatively sheltered from the effects of interest rate rises seen elsewhere.”
Tags: Asset class, Economy, Equities, Interest rate, Japan, Most favoured, Multi-asset teams, Rises, Sentiment indicator, Sheltered
