Free Trial
JGBS

Futures Unwind Early Losses

PHP

Peso Edges Higher On Narrower BoP Deficit

CHINA RATES

China Repo Rates Rise on Tuesday

AUSSIE BONDS

Marginally Firmer On Better Than Expected Budget

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

Yen Lags G10 Peers

JPY

USD/JPY crept higher Tuesday amid twist flattening in U.S. Tsy yield curve, with safer currencies (JPY, CHF) struggling to find poise.

  • The gap between yields on 10-year U.S. Tsys and JGBs widened ~3bp, while 2-year spread rose ~8bp.
  • A generally positive showing from equity markets post-Asia reduced demand for safe havens. The VIX index ground lower.
  • USD/JPY risk reversals advanced, with one-year skews printing best levels since mid-May as they consolidated above par.
  • Spot USD/JPY last sits at Y134.29, up 7 pips on the day. Should we get above Aug 8 high of Y135.58, bulls could take aim at Y135.96, the 61.8% retracement of the Jul 14 - Aug 2 sell-off. Bears look for a dip under Aug 11 low of Y131.74.
  • Japan's trade deficit is expected to have shrunk to Y1.3625tn in Jul from Y1.3985tn prior, according to a Bloomberg survey of analysts. Core machine orders will also cross the wires today.
  • Looking further afield, Japan's national CPI figures will be published this Friday.
159 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

USD/JPY crept higher Tuesday amid twist flattening in U.S. Tsy yield curve, with safer currencies (JPY, CHF) struggling to find poise.

  • The gap between yields on 10-year U.S. Tsys and JGBs widened ~3bp, while 2-year spread rose ~8bp.
  • A generally positive showing from equity markets post-Asia reduced demand for safe havens. The VIX index ground lower.
  • USD/JPY risk reversals advanced, with one-year skews printing best levels since mid-May as they consolidated above par.
  • Spot USD/JPY last sits at Y134.29, up 7 pips on the day. Should we get above Aug 8 high of Y135.58, bulls could take aim at Y135.96, the 61.8% retracement of the Jul 14 - Aug 2 sell-off. Bears look for a dip under Aug 11 low of Y131.74.
  • Japan's trade deficit is expected to have shrunk to Y1.3625tn in Jul from Y1.3985tn prior, according to a Bloomberg survey of analysts. Core machine orders will also cross the wires today.
  • Looking further afield, Japan's national CPI figures will be published this Friday.