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.
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.
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.
bullish cash contracts equity future gradually heart investors led market sentiment spreading took trading
Trading in future contracts led the market today, with bullish sentiment there gradually spreading to cash bonds. This is probably because some investors took heart from a pullback in the equity market here.
data emerged largely line market moved pocket positions short
The GDP data emerged largely in line with market expectations, so they moved to liquidate their short positions to pocket profits.
debt government lift losses market prices purchase stepping stock
The JGB market got some lift from losses in stock prices and from index-trackers (funds) stepping in to purchase government debt paper.
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.
buy dislike investors news trigger
The news could be a trigger to buy bonds. Investors dislike uncertainty.
bonds might selling
We might see some selling in 20-year bonds before the auction.
actively bond boost debt fairly good government outcome prices purchased supported
Bond prices got a boost from the fairly good outcome of today's two-year debt auction, while index-trackers actively purchased government debt paper, which supported the market.