Free Trial

MNI BRIEF: Long-Term U.S. Rates Noted In BOJ Stability Report

(MNI) Tokyo
TOKYO (MNI)

The Bank of Japan's Financial System Report on Thursday warned of an adjustment in global financial markets, depending on developments in U.S. long-term interest rates and the pandemic.

The FSR pointed out three major risks; "an increase in credit costs, a deterioration in gains/losses on securities investment and destabilization of foreign currency funding due to the tightening of foreign currency funding markets, mainly for the U.S. dollar."

But overall, "in global financial markets, risk sentiment has remained favorable on the whole, and there have been continuing inflows of funds to the stock market and emerging market economies."

On Japan, the FSR said financial markets have maintained stability "on the whole, while Covid-19 continues to have a significant impact on economic and financial activity around the globe."

MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com
MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com

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.