Halister News

(Bloomberg) -- U.S. Treasuries richen across the curve, with benchmark 10-year yield dropping 4bps to 2.33% as unwinding of the Trump trade continues after Wednesday’s press conference from the U.S. President-elect revealed little details on his economic plans.

• “Assuming the Fed hikes rate twice or three times this year, the 10-year yield of over 2.5% appears to be an overshoot,” says Makoto Noji, FX and foreign bond strategist at SMBC Nikko Securities in Tokyo
  • Japanese selling seems to have peaked when 10-year yield reached 2.6%
  • Speculative shorts have built up to levels that trigger buyback
  • Sees 10-year yield falling toward 2.00% in the six months; U.S. and global economy may not be as strong as some investors are hoping for
  • Expects Fed to raise rate no more than twice this year
• NOTE: Net short position on 10-year note futures climbed to a record 344,931 contracts in week ended Jan. 3: CFTC
  • Should current 10-year yield falls to 2.00% by July 31, the note would return 4.1%, according to Bloomberg data

(Bloomberg) -- USD/SGD forward points are particularly soft in this round of dollar strength, in contrast to situation at end of 2015 and start of 2016, says Irene Cheung, senior strategist for Asia at ANZ.

• This suggest liquidity is “pretty ample” and that has helped keep forward points soft despite increase in USD Libor, Singapore-based Cheung says
  • “A not-so-sharp increase in the SOR would help the Singapore economy” in this very low-growth environment, she says, referring to swap-offer rate
  • Sees 6-month SOR rising to 1.6%-1.7% at year-end
• Click here to see divergence between USD/SGD spot, forwards
• Click here for earlier story about interest-rate swaps
• NOTE: USD/SGD 6-month onshore forward point falls to as low as -12.52 pips, level unseen since Nov. 11, from -7.75 Wednesday
  • 6-month SOR is floating leg of SGD interest-rate swaps and computed based on USD/SGD forwards and USD Libor

(Bloomberg) -- Here’s a roundup of Indian co. debt-rating changes.

• To get this story sent to your inbox real-time, run NI INRATINGS , click on Display & Edit, then Set Alert Delivery

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• TD Power Systems
  • Long-term bank facilities cut to A- from A at Crisil
  • Cites sluggish demand scenario resulting in low capacity utilization

The Securities and Exchange Commission filing is accessible at: {JNJ US Equity CF} for the company's Edgar filings {JNJ US Equity CN} for all company news --ELIZABETH WOLLMAN