MNI: PBOC Net Injects CNY37.3 Bln via OMO Wednesday

MNI: PBOC Sets Yuan Parity Lower At 7.1843 Weds; -1.22% Y/Y

MNI BRIEF: Japan Nov CGPI Rises 3.7% Y/Y, Import Prices Drop

MNI BRIEF: Brazil Not Even Close To Fiscal Dominance - David

CORRECTED-MNI BRIEF: Brazil Inflation Rises To 4.87% In Nov

MNI China Daily Summary: Tuesday, December 10

MNI: JAPAN NOV CORP GOODS PRICE INDEX +3.7% Y/Y; OCT REV +3.6%

MNI: USDA: 2024/2025 CORN PRODUCTION EST 15.14B BSL

EZ/UK T-Bill Calendar: 12-Month BOT Auction on Wednesday

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

JAPAN: JGB Futures up in Morning Trade

JAPAN
APACJapanBulletGlobalFixed Income BulletsForeign Exchange BulletsRegionMarkets
  • JGB futures opened up Monday at +12 in Monday's open on what is expected to be quiet day given Japan, China and South Korea holidays.
  • A recent Bloomberg survey suggests that any potential Bank of Japan policy action will wait until after the Federal Reserve this week, with 50% of economists predicting that there will be some form of BOJ action in their December meeting. However, whilst most Central Banks are considering rate cuts, economists predict that the BOJ will hike rates in December.
  • As noted last week by MNI, BoJ's Tamura emphasized the need to raise short-term interest rates to around 1% by the latter half of the long-term forecast period through fiscal 2026 to achieve the 2% inflation target. He views the neutral rate at 1% and suggests adjusting rates based on the certainty of reaching the price goal.
  • Hedge funds appear to be in agreement with the view on the BOJ with Friday seeing the Yen a strong performer as positions are put on via options, to benefit from a strengthening of the currency.
  • Monday morning trading of cash JGBs is muted with the 10 year yield unchanged.
  • With today’s holiday there are no JGB auctions until Wednesday.
  • The next key data release will be Wednesday’s Trade data where surveys suggest that the recent strength in Exports will continue. 
  •  
219 words

To read the full story

Close

Why 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.
  • JGB futures opened up Monday at +12 in Monday's open on what is expected to be quiet day given Japan, China and South Korea holidays.
  • A recent Bloomberg survey suggests that any potential Bank of Japan policy action will wait until after the Federal Reserve this week, with 50% of economists predicting that there will be some form of BOJ action in their December meeting. However, whilst most Central Banks are considering rate cuts, economists predict that the BOJ will hike rates in December.
  • As noted last week by MNI, BoJ's Tamura emphasized the need to raise short-term interest rates to around 1% by the latter half of the long-term forecast period through fiscal 2026 to achieve the 2% inflation target. He views the neutral rate at 1% and suggests adjusting rates based on the certainty of reaching the price goal.
  • Hedge funds appear to be in agreement with the view on the BOJ with Friday seeing the Yen a strong performer as positions are put on via options, to benefit from a strengthening of the currency.
  • Monday morning trading of cash JGBs is muted with the 10 year yield unchanged.
  • With today’s holiday there are no JGB auctions until Wednesday.
  • The next key data release will be Wednesday’s Trade data where surveys suggest that the recent strength in Exports will continue. 
  •