DIRS.INFO The most relevant business & tech news

But it was U.S. Treasuries that hogged the limelight once again, with benchmark 10-year yields climbing to 4.366% - their highest level since 2007 and up almost 40 bps month-to-date - before losing some ground to 4.3141%. "There's a more cautiously optimistic mood across financial markets," said Fiona Cincotta, senior markets analyst at City Index in London. At the same time, however, inflation expectations have hardly budged - meaning "real" yields, which discount inflation expectations, have surged - a development likely to prompt investors to re-evaluate taking risks. The 10-year real rate breached 2% late last week. In Europe, benchmark bond yields in Germany, France and Italy eased after Monday's sharp climb , , .

Persons: BOJ's Ueda, Fiona Cincotta, Jackson, Padhraic Garvey, Vishnu Varathan, Kazuo Ueda, Karin Strohecker, Elizabeth Howcroft, Dhara Ranasinghe, Tom Westbrook, Chizu Organizations: REUTERS, Staff, Nvidia, Wall, Index, Federal Reserve, Treasury, ING . Markets, Fed, European Central Bank, Bank of England, Bank of Japan, Mizuho Bank, NVIDIA, Wednesday, Tech, P, Brent, Benchmark, Dalian, Thomson Locations: Frankfurt, Germany, Europe, Asia, U.S, London, Americas, Jackson Hole , Wyoming, Singapore, France, Italy

U.S. Dollar and Chinese Yuan banknotes are seen in this illustration taken January 30, 2023. Rising U.S. Treasury yields, with benchmark 10-year yields hitting 16-year highs on Tuesday, and unease over China have boosted the dollar this month. "What we're seeing is a bit of a pause," said Fiona Cincotta, senior markets analyst at City Index, in London. The U.S. dollar index - which measures the currency against six major counterparts, was a touch softer at 103.30, holding below Friday's 10-week highs at 103.68. The Australian dollar was 0.4% firmer at $0.6441 as global risk appetite recovered.

Persons: Dado Ruvic, Bond, Powell, Jackson, Fiona Cincotta, We've, Kazuo Ueda, Jerome Powell, Sterling, Lee Hardman, Dhara Ranasinghe, Kevin Buckland, Angus MacSwan, Bernadette Baum Organizations: REUTERS, U.S, Treasury, City Index, Bank of Japan, Federal, Thomson Locations: China, London, , Wyoming, U.S, Toyko

☆ Asia stocks snap losing streak, yields hit fresh peaks
▼ + stars: | 2023-08-22 | by ( Tom Westbrook | ) www.reuters.com time to read: +4 min

Benchmark 10-year yields climbed 2.5 basis points (bps) in early Tokyo trade to touch 4.366%, their highest level since 2007 and are up almost 40 bps for the month so far. European futures were last up 0.6% and FTSE futures rose 0.3%. At the same time, however, inflation expectations have hardly budged - meaning that "real" yields, which discount inflation expectations, have surged - a development likely to prompt investors to re-evaluate taking risks. The 10-year real rate breached 2% on Monday. Sovereign yields in Australia, Korea, New Zealand and Japan all rose on Tuesday, with 10-year Japanese yields hitting their highest since 2014 at 0.66%.

Persons: Issei Kato, BOJ's Ueda, Vishnu Varathan, Jerome Powell, Kazuo Ueda, Edwina Gibbs Organizations: REUTERS, SINGAPORE, Japan's Nikkei, Wall, Treasury, Mizuho Bank, Federal, Sovereign, BHP, Bank of Japan, New Zealand, Brent, Benchmark, Dalian, Nvidia, Thomson Locations: Tokyo, Japan, Asia, Pacific, Singapore, Australia, Korea, New Zealand, Hong Kong

☆ Dollar eases before Jackson Hole, yen rises amid intervention jitters
▼ + stars: | 2023-08-22 | by ( Kevin Buckland | ) www.reuters.com time to read: +4 min

U.S. Dollar and Chinese Yuan banknotes are seen in this illustration taken January 30, 2023. China's yuan briefly popped to a one-week high as the central bank again tried to bolster the currency by setting a much stronger-than-anticipated daily mid-point, but those gains fizzled out quickly. Money markets currently lay a bit less than 50/50 odds for another 25 basis point Fed hike by November, before the central bank shifts to rate cuts next year. Traders are wary of intervention after levels around 146 spurred the first yen buying by Japanese officials in a generation last September. On Thursday, the dollar reached 146.565 yen for the first time since Nov. 10.

Persons: Dado Ruvic, Jerome Powell, Kazuo Ueda, Richard Franulovich, Powell, Kristina Clifton, Kevin Buckland, Simon Cameron, Moore Organizations: REUTERS, Rights, U.S, Federal, Bank of Japan, U.S ., Westpac, Treasury, Traders, Sterling, Commonwealth Bank of Australia, Thomson Locations: Bank, Jackson Hole , Wyoming, China's, Beijing, China

New Governor of Bank of Japan Kazuo Ueda meets Japanese Prime Minister Fumio Kishida at prime minister?s official residence in Tokyo, Japan, April 10, 2023. The discussions took place in the wake of the dollar's recent ascent above 145 yen, a level that in September 2022 triggered Japan's first yen-buying operation since 1998. "There wasn't anything in particular discussed today," Ueda told reporters after the meeting, when asked whether the two held talks on recent exchange-rate volatility. Ueda also said he explained to Kishida the Bank of Japan's decision last month to loosen its grip on long-term interest rates. It was the second such meeting since Ueda assumed the top BOJ post in April.

Persons: Bank of Japan Kazuo Ueda, Fumio Kishida, Kimimasa, Ueda Yen, Kazuo Ueda, Japan's, Ueda, Haruhiko, Shunichi Suzuki, Tetsushi Kajimoto, Satoshi Sugiyama, Chang, Ran Kim, Edmund Klamann Organizations: Bank of Japan, REUTERS Acquire, Ueda, Bank of, Soaring U.S, Treasury, Thomson Locations: Tokyo, Japan, TOKYO

☆ Morning Bid: Skyrocketing yields in the spotlight
▼ + stars: | 2023-08-22 | by ( ) www.reuters.com time to read: +3 min

REUTERS/Dado Ruvic/Illustration/File Photo Acquire Licensing RightsA look at the day ahead in European and global markets from Tom WestbrookBond selling extended on Tuesday to drive 10-year Treasury yields to fresh 16-year highs in Asia trade and leave already-nervous stock markets cautious. But it isn't inflation, as inflation expectations have hardly budged -- investors are plainly demanding a higher return to keep on buying the stuff. Some analysts have drawn attention to the coincidence of timing between the selloff and the Bank of Japan's signal that it would allow 10-year Japanese yields as high as 1%. Small beer on the data calendar on Tuesday will keep the focus on yields and on Fed Chair Jerome Powell's Jackson Hole speech on Friday. The yen took a small boost on the risk of intervention after Bank of Japan Governor Kazuo Ueda met with Prime Minister Fumio Kishida.

Persons: Dado Ruvic, Tom Westbrook Bond, Jackson, Jerome Powell's Jackson, HSI, Thaksin Shinawatra, Kazuo Ueda, Fumio Kishida, Ueda, Shri Navaratnam Organizations: REUTERS, Bank of, BHP Group, Bank of Japan, Reuters, Better, Thomson Locations: Asia, Shanghai, Hong Kong, China, Bangkok

☆ Japan's core inflation eases, bolstering view BOJ will stand pat
▼ + stars: | 2023-08-18 | by ( Tetsushi Kajimoto | ) www.reuters.com time to read: +2 min

The 3.1% rise in the core consumer price index (CPI), which includes oil products but excludes volatile fresh food prices, matched a median market forecast, following a 3.3% increase in the previous month. The so-called core-core inflation index, which excludes fresh food and energy prices and is closely watched by the BOJ as a better gauge of trend inflation, rose 4.3% year-on-year in July, accelerating from the previous month. Still, analysts say an acceleration in service-led inflation is a positive sign that demand-side inflation, which the BOJ is looking to stoke, may be building. Gabriel Ng, economist at Capital Economics, said the key question is whether services inflation can pick up the baton. Food costs were among the major contributors to the overall inflation due to elevated prices of raw materials.

Persons: Takeshi Minami, Gabriel Ng, Ng, Kazuo Ueda, Tetsushi Kajimoto, Sam Holmes Organizations: Bank of Japan, Norinchukin Research, Capital Economics, Reuters, Thomson Locations: TOKYO, stoke

Key hurdles for the two projects include the country's caps on domestic gas prices, limits on gas exports and the high costs for carbon capture and storage - required for new gas projects to help fight global warming. Last month, Shell (SHEL.L) said it would sell its holding in the Masela project to Indonesia's Pertamina and Malaysia's Petronas, while Chevron (CVX.N) agreed to sell its stake in the IDD project to Italy's Eni (ENI.MI). Reuters GraphicsNEW TERMS NEEDEDOnce one of the world's top five liquefied natural gas (LNG) exporters, Indonesia's LNG exports have halved in the past decade, Kpler data showed. The country has not approved a major oil or gas project since 2016 - the expansion of BP's (BP.L) Tangguh LNG plant. The current formula for splitting revenue between the government and investors in gas projects sets the base rate at 48% for companies.

Persons: magnifier, Dado Ruvic, Benny Lubiantara, Andrew Harwood, Wood Mackenzie, SKK Migas, Benny, Prateek Pandey, Takayuki Ueda, Naing, Inpex's Ueda, Fransiska Nangoy, Bernadette Christina Munthe, Emily Chow, Yuka Obayashi, Florence Tan, Sonali Paul Organizations: REUTERS, Indonesia, Shell, Chevron, Indonesia Deepwater Development, Petronas, Eni, Essential Services, Reuters, Indonesia Petroleum Association, Rystad Energy, BMI Research, Fitch Group, Tcf, Thomson Locations: Indonesia, JAKARTA, Jakarta, Chevron, Tokyo, Masela, Singapore

☆ Indonesia gives automakers more time to qualify for EV credits in investment bid
▼ + stars: | 2023-08-10 | by ( Stefanno Sulaiman | ) www.reuters.com time to read: +3 min

[1/5] A worker stands near a Mini Cooper Electric car, that is displayed during the Gaikindo Indonesia International Auto Show in Tangerang, near Jakarta, Indonesia, August 10, 2023. REUTERS/Willy KurniawanTANGERANG, Indonesia, Aug 10 (Reuters) - Indonesia said on Thursday it would give automakers two more years to qualify for electric vehicle incentives in Southeast Asia's largest auto market, a move followed by investment commitments by China's Neta EV brand and Mitsubishi Motors. The moves announced at the Jakarta auto show come as Indonesia races Thailand and India to build out an EV industry as an alternative to China, the world’s largest producer. Indonesia is Southeast Asia’s largest auto market and its second-largest production hub behind Thailand. Until now, only two manufacturers have shifted enough production to Indonesia to qualify for full incentives: Wuling Motors (0305.HK) and Hyundai (005380.KS).

Persons: Willy Kurniawan TANGERANG, Agus Gumiwang Kartasasmita, ” Agus, Wuling, Hiroyuki Ueda, Stefanno Sulaiman, Kevin Krolicki, Conor Humphries Organizations: Cooper, REUTERS, China's, Mitsubishi Motors, Toyota, Daihatsu, Honda, Mitsubishi, New Energy Automobile, Wuling Motors, HK, Hyundai, Wuling, Air EV, Reuters, Gaikindo, Auto Show, Astra Motor, PT Astra International, Thomson Locations: Indonesia, Tangerang, Jakarta, Thailand, India, China, Southeast, Neta, Gaikindo Indonesia

☆ Bank of Japan debated prospects of sustained inflation at July meeting
▼ + stars: | 2023-08-07 | by ( ) www.cnbc.com time to read: +1 min

The Bank of Japan debated growing prospects of sustained inflation at their July meeting with one board member saying wages and prices could keep rising at a pace "not seen in the past," according to a summary of opinions released on Monday. "More firms have started to consider wage hikes for next fiscal year and beyond. Japan is expected to see a new phase where wages and services prices continue to increase," according to one opinion shown in the summary. Therefore, wages and selling prices could continue to rise at a pace that has not been seen in the past," another opinion showed. Governor Kazuo Ueda said the decision was a pre-emptive move against the risk of rising inflation pushing up long-term bond yields, and heightening volatility in financial markets.

Persons: Kazuo Ueda Organizations: Bank, Japan Locations: Japan

☆ Japan's 'Mr.Yen' Sakakibara expects no yen intervention
▼ + stars: | 2023-08-07 | by ( Brigid Riley | ) www.reuters.com time to read: +3 min

Japan's former currency czar Eisuke Sakakibara speaks at an interview with Reuters in Tokyo, Japan February 6, 2017. Sakakibara gained a reputation as a market mover in the 1990s after devising several currency interventions during his time as vice finance minister, earning him the nickname "Mr Yen". Sakakibara takes Bank of Japan head Kazuo Ueda at his word that easy policy will be retained for the time being. Japan's Ministry of Finance intervened in October when the yen slipped to 149.70 against the dollar, and speculation grew that the currency could tumble further. While the chance that the yen weakens further against the dollar can't be completely dismissed, Sakakibara believes the "tide has changed" for dollar-yen.

Persons: Eisuke Sakakibara, Kim Kyung, Sakakibara, Mr Yen, Kazuo Ueda, Brigid Riley, Hiroko Hamada, Shri Navaratnam Organizations: Reuters, REUTERS, U.S, U.S . Federal Reserve, of Finance, Bank of Japan, Fed, Bank, Japan, Japan's Ministry of Finance, Thomson Locations: Tokyo, Japan, U.S, Japan's

☆ BOJ debated prospects of sustained inflation at July meeting - summary
▼ + stars: | 2023-08-07 | by ( Leika Kihara | ) www.reuters.com time to read: +3 min

Japan is expected to see a new phase where wages and services prices continue to increase," according to one opinion shown in the summary. Therefore, wages and selling prices could continue to rise at a pace that has not been seen in the past," another opinion showed. Governor Kazuo Ueda said the decision was a pre-emptive move against the risk of rising inflation pushing up long-term bond yields, and heightening volatility in financial markets. "If prices and inflation expectations continue to heighten, the effects of monetary easing will strengthen. On the other hand, strictly capping the 10-year bond yield at 0.5% could affect bond market function and market volatility," one opinion showed.

Persons: Kim Kyung, Kazuo Ueda, Leika, Chang, Ran Kim, Sam Holmes Organizations: Bank of Japan, REUTERS, Bank, Japan, Thomson Locations: Tokyo, Japan, TOKYO

☆ Insight: BOJ makes bold shift as yen risks grow too big to ignore
▼ + stars: | 2023-08-03 | by ( Leika Kihara | ) www.reuters.com time to read: +9 min

The BOJ's decision shook markets on Friday and contrasted sharply with Ueda's more cautious comments in recent months about the dangers of retreating too quickly from accommodative Kuroda-era policies. "There's also a small but probable risk of inflation overshooting in Japan, which gave the BOJ reason to act." NEW PRIORITIESThe BOJ's policy decision last week signalled to investors that it would now allow the 10-year government bond yield to move closer to 1% before it intervenes. 'BIT BY BIT'The shift in thinking gained momentum at the BOJ's June policy meeting, but not enough to turn the tide. It was a test case, or a preliminary exercise, toward future policy normalisation," said former BOJ board member Takahide Kiuchi.

Persons: Issei Kato, Kazuo Ueda, Haruhiko Kuroda, Fumio, accommodative Kuroda, Ueda, YCC, There's, Hirokazu Matsuno, Seiji Adachi, Asahi Noguchi, Ryozo Himino, Shinichi Uchida, Uchida, Masato Kanda, Kanda, Takahide, Leika Kihara, Takaya Yamaguchi, Takahiko Wada, Kentaro Sugiyama, Yoshifumi, Sam Holmes Organizations: Bank of Japan, REUTERS, TOKYO, Bank, Ueda, Reuters, BIT, Asahi, Nikkei, Thomson Locations: Tokyo, Japan

But the benign reaction across markets to the BOJ's latest "yield curve control" tweak suggests BOJ Governor Kazuo Ueda may have timed this one just right. In those eight months global inflation has topped out and is now clearly falling, and major central banks are closer to "peak rates." Barclays analysts reckon the BOJ will scrap YCC in October, which would be "sufficiently justified" by Japan's strengthening inflation dynamics. BOJ GETS MARKET BUY-INWhenever the BOJ decides to start offloading its JGBs, there will be plenty of pent-up demand. But the early signs suggest investors believe the BOJ has timed it right and can, to coin a phrase, achieve its own "soft landing."

Persons: Issei Kato, Kazuo Ueda, Government Bond, Jamie McGeever, Paul Simao Organizations: Bank of Japan, REUTERS, Government, Reuters, HSBC, Barclays, International Monetary Fund, U.S . Federal, European Central Bank, Reserve Bank of Australia, Thomson Locations: Tokyo, Japan, ORLANDO, Florida

☆ After surprise tweak, what now for BOJ's yield curve control?
▼ + stars: | 2023-07-31 | by ( Leika Kihara | ) www.reuters.com time to read: +4 min

Since 2016, the BOJ has guided short-term interest rates at minus 0.1% and the 10-year government bond yield at around 0% in action known as yield curve control (YCC). It has also set an allowance band of 0.5% above and below the 10-year yield target. The BOJ was criticised by investors last year for distorting market pricing by defending the 0.5% yield cap with unlimited bond buying. The bank has forestalled the risk by deciding to intervene only when the 10-year yield could breach 1.0%. It may wait until the findings become available around May before raising interest rates.

Persons: Kazuo Ueda, Ueda, Leika Kihara, Christopher Cushing Organizations: Bank of Japan, U.S ., Thomson Locations: TOKYO, Japan

☆ Bank of Japan has its cake and eats it
▼ + stars: | 2023-07-28 | by ( ) www.reuters.com time to read: +2 min

Governor Kazuo Ueda on Friday shocked global markets by pledging more flexibility in the Bank of Japan’s (8301.T) yield curve control scheme, its mechanism for controlling long-term interest rates. The central bank said its previous rigid target of keeping yields on 10-year sovereign bonds in a range of 0.5% to minus 0.5% was now just a “reference”. And it promised to buy 10-year bonds at 1%, which Ueda defined as a “just-in-case” cap. Traders immediately breached the officially unchanged range; the yield on 10-year government bonds hit a 9-year high of 0.575%. Instead, the bank may have found a way to make it more sustainable.

Persons: Kazuo Ueda, Ueda, Francesco Guerrera, Oliver Taslic Organizations: Reuters, Bank of Japan’s, Traders, Global, Twitter, Consumers, Thomson Locations: MUMBAI, Japan, Una

☆ Bank of Japan pledges to guide yield curve control with 'greater flexibility'
▼ + stars: | 2023-07-28 | by ( Clement Tan | ) www.cnbc.com time to read: +1 min

Japan's central bank on Friday pledged greater flexibility in its target range for 10-year Japanese government bond yields, while keeping its ultra loose interest rate intact and revising core consumer inflation forecast upward for the current fiscal year. In a policy statement, the Bank of Japan said it will retain the 50 basis point limit on 10-year Japanese government bond yields either side of its 0% target. It will also offer to purchase 10-year JGBs at 1% every business day through fixed-rate operations, unless no bids are submitted. But the BOJ held its short-term interest rate target at -0.1% after a two-day meeting. However, the central bank has said inflation will slow toward the end of this year — a view that's shared by the Japanese government.

Persons: Kazuo Ueda Organizations: Bank of Japan Locations: Tokyo's Shinjuku, Japan's

☆ Asia markets set to fall ahead of Bank of Japan rate decision
▼ + stars: | 2023-07-28 | by ( Lim Hui Jie | ) www.cnbc.com time to read: +1 min

Bank of Japan Governor Kazuo Ueda arrives to conduct an interview with a small group of journalists in Tokyo on May 25, 2023. Richard A. Brooks | AFP | Getty ImagesAsia-Pacific markets are set to fall ahead of the Bank of Japan's rate decision on Friday. Japan's central bank is expected to keep its benchmark policy rate unchanged at -0.1%, but investors will be keenly watching for any signs of a shift in stance towards its yield curve control policy. In Australia, futures for the S&P/ASX 200 were at 7,367, lower than the index's last close of 7,455.9, ahead of its producer price index figures for the second quarter. Futures for Hong Kong's Hang Seng index also point to a lower open for the index, standing at 19,347 compared to the HSI's last close of 19,639.11.

Persons: Kazuo Ueda, Richard A, Brooks Organizations: Japan, AFP, Getty, Bank of, Nikkei Locations: Tokyo, Asia, Pacific, Japan's, Chicago, Osaka, Australia

☆ BOJ Governor Ueda's comments at news conference
▼ + stars: | 2023-07-28 | by ( ) www.reuters.com time to read: +4 min

Following are excerpts from BOJ Governor Kazuo Ueda's comments at his post-meeting news conference, which was conducted in Japanese, as translated by Reuters:BOND YIELD"We will not tolerate an increase in the 10-year bond yield above 1% and will step in if it does. ON WHY THE BOJ DECIDED TO MOVE NOW"The inflation forecast for this fiscal year has been revised up quite significantly. The bond market is pretty stable now and we saw uncertainty over the outlook very high. Given uncertainty over the outlook, we decided to pre-empt risks by setting 1% as a loose framework along with the 0% target and the 0.5% yield band." ON WHETHER THE MARKET'S SIDE-EFFECTS OF YCC INCLUDE VOLATILE CURRENCY MARKET MOVES"The BOJ does not target currency rates in guiding monetary policy.

Persons: Kazuo Ueda's, haven't, That's, we're, Leika Kihara, Subhranshu Sahu Organizations: Bank of Japan, Reuters, THE, Thomson Locations: Japan

☆ Japan sends yen soaring and stocks tumbling with hint it could join rate-hiking party
▼ + stars: | 2023-07-28 | by ( Laura He | ) edition.cnn.com time to read: +3 min

CNN —Japan’s central bank kept interest rates unchanged Friday despite rising inflation but hinted that it could gradually abandon years of ultra-cheap money, sending the yen soaring and stocks tumbling. “No introduction of the policy rate guidance suggests that the Bank [of Japan] left open the near-term policy rate hike optionality, in our view,” UBS analysts noted. The Japanese yen surged by as much as 1% against the US dollar in response to the BOJ announcement. It has stayed above the central bank’s inflation target for the fifteenth straight month. On paper, the headline numbers suggest the BOJ’s inflation target has already been met.

Persons: ”, Stephen Innes, “, Kazuo Ueda Organizations: CNN, Bank of Japan, Bank, UBS, US Federal Reserve, European Central Bank, Nikkei Locations: Japan, EU, China

☆ The Bank of Japan just shocked markets with a policy tweak — here's why it matters
▼ + stars: | 2023-07-28 | by ( Silvia Amaro | ) www.cnbc.com time to read: +5 min

Kazuo Ueda, governor of the Bank of Japan (BOJ). Bloomberg | Bloomberg | Getty ImagesThe Bank of Japan announced Friday "greater flexibility" in its monetary policy — surprising global financial markets. The central bank loosened its yield curve control — or YCC — in an unexpected move with wide-ranging ramifications. When asked if the central bank had shifted from dovish to neutral, he said: "That's not the case. MUFG said that Friday's "flexibility" tweak shows the central bank is not yet ready to end this policy measure.

Persons: Kazuo Ueda, Shigeto Nagai, CNBC's, —, Duncan Wrigley, MUFG, Governor Ueda, Michael Metcalfe, Metcalfe Organizations: Bank of Japan, Bloomberg, Getty, of Japan, Nasdaq, Oxford Economics, disinflation, Capital Economics, U.S, U.S . Federal, Bank, Pantheon, Street Global Locations: Europe, Japan, U.S ., China, dovish

☆ BOJ to keep ultra-low rates, may debate fine-tuning yield cap
▼ + stars: | 2023-07-27 | by ( Leika Kihara | ) www.reuters.com time to read: +4 min

At the two-day meeting ending on Friday, the BOJ is expected to maintain its yield curve control (YCC) targets at -0.1% for short-term interest rates and 0% for the 10-year bond yield. With the BOJ set to keep short-term rates negative, a tweak to the yield cap or allowance band is unlikely to trigger a spike in borrowing costs that would severely hurt the economy. There is no consensus within the board on how soon the BOJ should dial back stimulus. Former BOJ board member Takahide Kiuchi expects the central bank to eventually modify YCC, but stand pat on Friday. "I don't think the BOJ sees an imminent need to act, as markets aren't attacking its yield cap this time."

Persons: Ueda, Kazuo Ueda, Takahide Kiuchi, Leika Kihara, Takahiko Wada, Tetsushi, Takaya Yamaguchi, Yoshifumi, Kentaro Sugiyama, Sam Holmes Organizations: Bank of Japan's, Monetary Fund, Thomson Locations: TOKYO, YCC

☆ Dollar slips as Fed's rate-hike cycle seen ending
▼ + stars: | 2023-07-27 | by ( ) www.cnbc.com time to read: +3 min

A foreign currency dealer counts US dollar notes at a currency market in Karachi on July 19, 2022. While Fed Chair Jerome Powell left the door open to another hike in September, traders were unconvinced, sending the U.S. dollar broadly lower. Sterling steadied at $1.2935, having eked out a slight gain against the dollar in the previous session. A dovish pivot from the Fed will likely exert a downward pressure on the U.S. dollar in the medium term." BOJ Governor Kazuo Ueda was quoted as saying at a key government meeting on Wednesday that the central bank will maintain accommodative monetary conditions for companies.

Persons: Jerome Powell, Sterling steadied, Emin Hajiyev, Nadia Gharbi, Kazuo Ueda, Jarrod Kerr Organizations: Federal Reserve, Fed, U.S, Insight Investment, ECB, Pictet Wealth Management, Bank, Australian, Reserve Bank of Australia, Communist Party Locations: Karachi, U.S

☆ Japan will gain from ultra-cautious ratesetters
▼ + stars: | 2023-07-27 | by ( Una Galani | ) www.reuters.com time to read: +3 min

If monetary authorities declare victory too soon and tighten policy, they risk derailing a growth revival and triggering a debt crisis. But the longer the Land of the Rising Sun waits for the perfect moment to raise interest rates, the more market ructions it will face. That belief is a key reason to maintain short term interest rates at minus 0.1% and stick with a seven-year-old policy of yield curve control. Japan’s interest payments would balloon; gross government debt accelerated during the pandemic and stood at 261% of GDP at the end of last year, more than twice the United States’ ratio. Follow @ugalani on TwitterCONTEXT NEWSThe Bank of Japan’s two-day policy meeting concludes on July 28.

Persons: What’s, Kazuo Ueda, That’s, Francesco Guerrera, Thomas Shum Organizations: Reuters, Bank of Japan’s, United, P, of Japan’s, Thomson Locations: MUMBAI, Japan, United States

☆ Bank of Japan may keep ultra-low rates, debate tweak to yield cap
▼ + stars: | 2023-07-27 | by ( Leika Kihara | ) www.reuters.com time to read: +4 min

The Nikkei newspaper reported the central bank will maintain its 0.5% cap for the 10-year government bond yield, but discuss allowing long-term interest rates to rise above that level by a certain degree. Under yield curve control (YCC), the BOJ guides the 10-year bond yield around 0% and sets an allowance band of 0.5% above and below that target. At the two-day meeting ending on Friday, the BOJ is widely expected to maintain the 10-year yield target and a -0.1% target set for short-term interest rates. The BOJ's meeting comes after the Federal Reserve's decision on Wednesday to raise interest rates, a move that further widens the interest rate gap between the United States and Japan. That changed last year, when soaring commodity prices pushed inflation above the 2% target and gave investors reason to attack the yield cap.

Persons: Ueda, Kazuo Ueda, Shinichi Uchida's, Leika Kihara, Sam Holmes, Conor Humphries Organizations: Nikkei, Bank of Japan, Reuters, Federal, Thomson Locations: TOKYO, United States, Japan

Search resuls for: "Ueda"

25 mentions found