MNI: Canada Mortgage Growth At Lowest Since 2001 At 3.3%

FED: POWELL TESTED POSITIVE FOR COVID-19, HAS SYMPTOMS

MNI China Daily Summary: Friday, May 17

MNI BRIEF: China Cities Must Ensure Housing Project Delivery

MNI BRIEF: PBOC Sets A New Tool To Bail Out Property Sector

MNI BRIEF: PBOC Abolishes Lower Housing Mortgage Limit

MNI: BAKER HUGHES US RIG COUNT 604; OIL RIGS 497; GAS RIGS 103

Canadians Buy Record CAD35.6B In Foreign Securities In March

MNI: FOREIGN HOLDINGS OF CANADA SECURITIES +14.4B CAD IN MAR

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

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

Timeline Update for Further Information on Suspected Intervention

JAPAN
HomepageBulletMarketsFixed Income BulletsForeign Exchange BulletsBank of Japan (BOJ) Market News
  • Headlines this morning from Bloomberg have been related to the BOJ’s release of projected "Sources of Changes in Current Account Balances at the Bank of Japan and Market Operations" for May 1 when FX transactions on Apr 29 settle. Link here: https://www3.boj.or.jp/market/en/stat/jx240430.htm
  • BofA point out that the "treasury funds and others category" shows the change in financial institutions' account balance due to transactions with the government. Some money market brokers have projections for other factors that may affect this data so the market then estimates the potential size of intervention.
  • Going forward, typically on the 5th business day of month (May 09) - the MoF will then disclose the composition of its official reserves for end-April. BofA say that assuming the MoF financed intervention by deposits ($155bn as of end-Mar) and securities ($995bn), the updated balances could also tell the rough size of FX interventions. They estimate that the valuation change and carry on the deposits and securities would add up to a decline of $14-16bn (due to higher rates) for the month of April.
  • May 31 – official MoF publication of the monthly size of interventions for the Apr 26-May 29 period.
190 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.
  • Headlines this morning from Bloomberg have been related to the BOJ’s release of projected "Sources of Changes in Current Account Balances at the Bank of Japan and Market Operations" for May 1 when FX transactions on Apr 29 settle. Link here: https://www3.boj.or.jp/market/en/stat/jx240430.htm
  • BofA point out that the "treasury funds and others category" shows the change in financial institutions' account balance due to transactions with the government. Some money market brokers have projections for other factors that may affect this data so the market then estimates the potential size of intervention.
  • Going forward, typically on the 5th business day of month (May 09) - the MoF will then disclose the composition of its official reserves for end-April. BofA say that assuming the MoF financed intervention by deposits ($155bn as of end-Mar) and securities ($995bn), the updated balances could also tell the rough size of FX interventions. They estimate that the valuation change and carry on the deposits and securities would add up to a decline of $14-16bn (due to higher rates) for the month of April.
  • May 31 – official MoF publication of the monthly size of interventions for the Apr 26-May 29 period.