© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

MNI BRIEF: China’s Top Ratings Agency Downgrades U.S.

MNI: PBOC Net Injects CNY3 Bln Via OMOs Friday

CHINA PBOC INJECTS CNY5 BILLION VIA 7-DAY REVERSE REPOS FRI

MNI: AUSTRALIA APR RETAIL SALES +0% M/M

Japan Tokyo May Inflation +3.2% Y/Y

MNI: JAPAN APR SERVICES PPI +1.6% Y/Y; MAR REV +1.7%

MNI: Canada Resilient To US Debt Ceiling Clash- Freeland

MNI BRIEF: BOC Defends 2% Target, Senate Asks About Raising It

MNI INTERVIEW: Canada Budget Keeps BOC On Pause: Ex Official

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access
Trending Top 5
Market News Topics

CBA Eye Another Move Lower In AUD/JPY

AUD
BulletMarketsForeign Exchange NewsHomepage

CBA note that “volatility in the global bond market has recently surged to levels last seen during the 2008‑09 global financial crisis in the wake of the banking turmoil. By comparison, moves in the currency market have been relatively contained. AUD/JPY - one of the most volatile major currency pairs - fell modestly in line with the narrowing of the Australian‑Japan 10-Year yield spread since the collapse of Silicon Valley Bank.”

  • “AUD/JPY would have been much weaker if volatility in equities and commodities had also surged, and if safe haven demand underpinned the USD. That said, we consider AUD/JPY has scope to fall further. We expect the 10-Year Japanese government bond yields to recover from its current 0.30% to the Bank of Japan’s upper target of 0.50%. Or even higher to around 1% if the BoJ abandons its yield curve control program as we expect. By contrast, the 10-Year Australian government bond yields can fall further if we are right about the RBA getting close to the end of its tightening cycle.”
172 words

To read the full story

Why Subscribe to

MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

CBA note that “volatility in the global bond market has recently surged to levels last seen during the 2008‑09 global financial crisis in the wake of the banking turmoil. By comparison, moves in the currency market have been relatively contained. AUD/JPY - one of the most volatile major currency pairs - fell modestly in line with the narrowing of the Australian‑Japan 10-Year yield spread since the collapse of Silicon Valley Bank.”

  • “AUD/JPY would have been much weaker if volatility in equities and commodities had also surged, and if safe haven demand underpinned the USD. That said, we consider AUD/JPY has scope to fall further. We expect the 10-Year Japanese government bond yields to recover from its current 0.30% to the Bank of Japan’s upper target of 0.50%. Or even higher to around 1% if the BoJ abandons its yield curve control program as we expect. By contrast, the 10-Year Australian government bond yields can fall further if we are right about the RBA getting close to the end of its tightening cycle.”