Eruditio autem mercatus

 

 

 

 

 


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Just another transcription piece to learn the music of the markets by way of digital ink osmosis; just as Dr. Thompson transcribed the Great Gatsby to learn the poetry of quintessential American experience novel.

-R.W.N II


 

10/03/2018 20:04:56 (8:04pm)

Yen Hits One-Year Low After Treasury Yields Jump

The yen sank to its weakest against the dollar in more than a year after U.S. Treasury yields climbed, with traders assessing American economic strength and prospects for sustained further Federal Reserve tightening. Japanese bond yield also advanced.

Stronger-than-anticipated reports on U.S. services and private sector payrolls helped drive up the yield on the US 10-year Treasuries more than +10bps on Wednesday trade.

Rising rates have sometimes posed a test for stock valuations, and the S&P 500 Index pared gains as bonds dropped in afternoon trade.

Japanese equities opened higher and futures tipped a modest rise in Hong Kong.

West Texas Intermediate crude oil is trading above $76 a barrel.

Ten-year Japanese government bond yields climbed to 0.145 percent at the open in Tokyo, a level that in the past has spurred BOJ buying — through the weakening of the yen could afford the country’s central bankers space to hold off on bond purchases.

The sell-off in U.S. government bonds reflects an economy that’s experiencing historically low unemployment and inflation rate broadly in line with the Fed’s target, encouraging policymakers to continue with their normalization campaign. Fed Chairman Jerome Powell said the central bank may eventually boost its benchmark past the neutral level.

U.S. payrolls data on Friday may stoke expectations for rate hikes into 2019, with the jobless rate seen dropping to 3.8 percent, matching the lowest since 1969.

Also helping risk appetite was an easing of concern over Italy which committed to reducing its deficit target in 2020 and 2021, a partial concession to the European Union after it pressured Finance Minister Giovanni Tria to contain the ruling coalition’s spending requests.

Elsewhere, crude is trading near the highest level since 2014, while aluminum in London rose the most since 2011. Higher energy prices and a stronger dollar have been hurting some emerging markets, with the Indian rupee hitting a record low on Wednesday.

Standby for the next key events:

+American factory orders for August are due Thursday; data on the trade balance will print Friday.

+ The U.S. government’s September jobs report is also due on Friday.

+ The Reserve Bank of India’s policy decisions will be announced.

Market Moves:


STOCKS
+ Japan’s Topix Index rose 0.8% as of 9:01 am in Tokyo
+Futures on Hong Kong’s Hang Seng added 0.1%
+Australia’s S&P /ASX 200 Index gained 0.1%
+The S&P 500 Index rose 0.1%, having been on track for a record close but falling short. Futures were down 0.2%

FX
+ The Bloomberg Dollar Spot Index is nearing its highest level since mid-August
+ The yen was at 114.49 per dollar after falling 0.8%.
+The offshore yuan dipped 0.1% to 6.8994 per dollar.
+The euro bought $1.1476.

BONDS
+The U.S. 10-year Treasuries climbed about +12bps to 3.18%. It was at 3.19% early in the Thursday Asian session.
+ The U.S. 30-year Treasury yield reached 3.35%.

COMMODITIES
+West Texas Intermediate crude oil was at $76.17 after climbing 1.6% Wednesday.
+Gold was steady at $1,198.16 /oz

 


-R.W.N II, yours in 322. BanyanMe

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