Naomi Hasegawa
Naomi Hasegawa
bank bond bubble comfort continue investors japanese lifts market monetary policy rate robust stocks view
US Treasuries, particularly long-term bonds, were robust on Friday, when the Japanese market was closed. Some bond investors view the surge in stocks as bubble while some investors take comfort in the view that the zero-interest rate policy will continue even after the Bank of Japan lifts ultra-loose monetary stance.
avoided chaos concern demand easy economic fair japan later monetary next notes policy political provides raised recovery signs sooner stocks strong wind
There's concern about demand for new five-year notes as signs of economic recovery raised speculation an end of easy monetary policy will come sooner than later next year. Japan avoided political chaos with Koizumi's strong victory, which provides a fair wind to stocks and a recovery scenario.
bank closer current exit government japanese loose monetary negative report step
The report suggests we're one step closer to the Bank of Japan's exit from its current loose monetary policy. That's negative for Japanese government bonds.
assets continue growing heading household interest japanese money rates risk stopped
Deposits stopped growing and household money is heading increasingly to risk assets and will continue to do so as long as Japanese interest rates are zero.
addition banks japanese reduction report sentiment stepped weighed
In addition a report that Japanese banks stepped up the reduction in their JGB holdings also weighed on sentiment here.
above central change core data emerging japan latest line national past sign three zero
The latest data show that the year-on-year change in the core national CPI has been at or above the zero for the past three months. This should be interpreted as a sign that Japan is emerging from deflation, and this is in line with the central bank's view.
fresh market payroll positions release reluctant
Market participants are reluctant to take fresh positions before the release of Jan US non-farm payroll data.
action appear bank central lose market takes unless
Market expectations appear to be accelerating and unless the central bank takes action soon, it may lose the market's confidence.
attention bonds buy hard paying people reason yields
People are paying attention to what Fukui will say. It's hard to find a reason to buy bonds as yields are rising.
bargains fall further investors likely prices purchases round targeting
Once a round of purchases by investors targeting bargains wanes, JGB prices will likely fall further going forward.
above buying gain hold lead nerves pushing test
A gain in the Nikkei above 16,500 will test investors' nerves and lead them to hold off buying bonds, pushing up yields.
bond directly example market textbook
The bond market reacted directly to the equities market, like a textbook example.
appear bank decision implement market measures plans within
The Bank of Japan's decision was well anticipated. Most measures it plans to implement appear to be within market expectations.
buy dislike investors news trigger
The news could be a trigger to buy bonds. Investors dislike uncertainty.