Search Mark
Home / Industry Dynamics

Yen Soars Prior To Yield Curve Control

Intel Flips With Unexpected Profit

Chipmaker Intel (INTC.O) on Thursday posted a surprise quarterly profit as the PC market slump started to ease, and forecasts third-quarter earnings above Wall Street expectations, sending its shares soaring up by 6%.

Western Car Makers Slashes E.V. Costs To Remain Competitive

Western automakers are fretting about the possibility of cheap Chinese electric cars in the near future, prompting France’s Renault (RENA.PA) to declare that it was aiming to slash production costs for its electric models by 40%.

Bankruptcy Sale With Lordstown Motors

Bankrupt Lordstown Motors (RIDEQ.PK) must face trial over a rival carmaker’s claim that Lordstown vehicles include stolen technology, a U.S. judge ruled Thursday, dealing a blow to the company’s hopes for a quick bankruptcy sale.

Today’s News

The Japanese yen lunges forward against all of its major peers after a report that the Bank of Japan (BOJ) plans to discuss tweaking its yield curve control policy later in the day.

The Japanese currency rallied as much as 2% against the euro, the highest since March, while rising by 1% against the dollar. The BOJ will consider letting long-term interest rates rise above its 0.5% cap by “a certain degree,” Nikkei reported, without attribution.

Markets have been running amuck with speculations in recent weeks that the BOJ will finally move to stop capping yields on government bonds after modifying its approach late last year. Traders have ramped up protection against a surge in yen, which would likely strengthen if the ceiling was forgoed.

Japanese bond futures slumped on the report, falling approximately 87 ticks, the most since March on a closing basis.

Other reports include:

Hawkish Hint Sends U.S. Markets Spinning

It didn’t take much to scare jittery American investors who have been pushing risk assets higher for the better part of the year. News that Japanese policy makers are weighing a hawkish tweak to years of bond yield repression ignited a small-scale tempest across the U.S. markets yesterday.

Source: Bloomberg

Treasury yields spiked, the yen jumped, and what had been another rousing rally in the S&P 500 quickly reversed. Pain spread rapidly across asset classes as traders came to grips with prospects that the last major central bank to resist restrictive policy might cave.

Japan Yield Breaks BOJ Ceiling

Japan’s benchmark government bond yield pierced the central bank’s ceiling amid speculation that policymakers are discussing loosening their tight grip on interest rates.

Source: BQ Prime

The 10-year yield climbed to 0.505% today, beyond the BOJ’s cap of 0.5%, as pressure builds on the BOJ to adjust its policy. While a majority of economists had projected the BOJ would stand pat this week, the Nikkei reported that officials would discuss on letting yields rise above its current limit by a “certain degree.”

Asia Stocks To Dip

The yen rallied and Asian equities were set to open lower as a report that the BOJ would discuss tweaking its policy today rumbled through markets from rates to stocks.

Source: The Economic Times

The Nikkei report that the BOJ would consider letting 10-year yields rise to some degree beyond its 0.5% cap pushed Treasury yields up as well as the Japanese currency. That impact in rates, which were already rising on U.S. economic data, flowed into stocks on Wall Street, which erased gains. Futures for equity benchmarks in Japan, Hong Kong and Australia all are pointing to declines.

Share to

Industry Dynamics

Weekly Economic Calendar For March 4th, 2024 – March 8th, 2024

Weekly Economic Calendar For March 4th, 2024 – March 8th, 2024.

2024-3-1 | Industry Dynamics

Vanguard CEO Tim Buckley Steps Down From USD 9 Trillion Asset Manager 

Today’s News  Vanguard’s Chief Executive, Tim Buckley, will be resigning at the end of this year after six years of leadership, coinciding with a period of remarkable growth for the USD 9 trillion asset manager. During his tenure, Vanguard faced scrutiny for its stance on climate change and withdrew from a prominent climate alliance, drawing […]

2024-3-1 | Industry Dynamics

G20 Finance Meeting: Western Powers Clash Over Russian Assets 

Today’s News  During the G20 finance meeting in Sao Paulo, Western powers grappled with the dilemma of handling frozen Russian assets, attempting to navigate around deep-seated geopolitical differences. Despite Brazilian officials’ efforts to steer discussions towards economic cooperation, geopolitical tensions resurfaced, particularly regarding the fate of Russian assets blocked by Western nations.   A visible […]

2024-2-29 | Industry Dynamics