HALISTER1: BOJ Yield Curve Move, Topix Buying Lifts Risk Appetite: Citi

BOJ Yield Curve Move, Topix Buying Lifts Risk Appetite: Citi

(Bloomberg) -- BOJ introducing two wrinkles that were not fully discounted may be seen as a net positive for risk appetite, Todd Elmer, FX strategist at Citigroup says.
  • BOJ using forward guidance more actively follows move by other central banks
  • Implication is that BOJ is giving itself additional freedom to shape yield curve, and it’s voicing that this is an explicit aim
    • Also, additional freedom to maintain the current policy track indefinitely
  • Buying of ETFs that track TOPIX is likely to be interpreted as an effort to help provide support for banks, says Elmer
  • USD/JPY up 0.85 to 102.55
  • Topix index up 2.5%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Todd Elmer (Citigroup Inc)

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HALISTER1: U.S. Treasury Curve Bear-Steepens Tracking Japan Bonds: Mizuho

U.S. Treasury Curve Bear-Steepens Tracking Japan Bonds: Mizuho

(Bloomberg) -- Long-end Treasury bonds are sold in response to sell-off in similar-maturity debt in Japan after BOJ decision today, says Hiroko Iwaki, senior foreign bond strategist at Mizuho Securities.
  • Doesn’t expect bear-steepening of U.S. curve to continue
  • Short end of Japan’s curve is firmly anchored, so BOJ-led steepening is unlikely to continue
  • Fed unlikely to send hawkish signals when bond markets show cracks
  • Sees today’s FOMC turning out to be dovish, exerting flattening pressure on U.S. curve
  • NOTE: Treasury 10-yr yield adds as much as 5 bps to 1.73%, while 30-yr yield increases as much as 6 bps to 2.49%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Hiroko Iwaki (Mizuho Securities Co Ltd)

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HALISTER1: BOJ Unlikely to Cut Short-Term Rates Excessively, Says JPMorgan

BOJ Unlikely to Cut Short-Term Rates Excessively, Says JPMorgan

(Bloomberg) -- BOJ trying to control Japan’s 10-year yield near zero percent suggests 7-year rate on the futures will probably trade slightly below zero, Takafumi Yamawaki, chief rates strategist at JPMorgan Chase & Co., says.
  • Volatility on yield curve is likely to drop
  • NOTE: BOJ maintains policy rate at -0.1% and to expand base if needed; to introduce QQE with yield curve control
  • JGB 10-year yield now up 2 bps at -0.045% after earlier rising above zero for first time since March
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Takafumi Yamawaki (JPMorgan Securities Japan Co Ltd)

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HALISTER1: USD/JPY May Fall Below 100 in Weeks as BOJ Disappoints: RBC

USD/JPY May Fall Below 100 in Weeks as BOJ Disappoints: RBC

(Bloomberg) -- BOJ appears to be laying the groundwork for more easing going forward but wants to take care of the banks first, Sue Trinh, head of Asia FX Strategy at RBC Capital Markets says.
  • From a monetary policy perspective this is a bit underwhelming as there is no aggressive moves: Trinh
  • Expects USD/JPY to move below 100 in coming weeks, if Fed holds rates unchanged
  • Says financial stocks, which should benefit the most from the yield curve control have rallied hard
  • USD/JPY up 0.9% to 102.65
  • Topix index up 2.2%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Sue Trinh (Royal Bank of Canada)

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HALISTER: Inditex 1H Ebitda EU2.11B; Est. EU2.1B

Inditex 1H Ebitda EU2.11B; Est. EU2.1B

(Bloomberg) -- Inditex 1H sales EU10.47b; est. EU10.4b
  • Inditex 1H net EU1.26b; est. EU1.24b
  • Inditex constant fx sales rose 13% Aug. 1 to Sept. 18
  • Inditex to distribute EU0.30/shr div. Nov. 2
  • Inditex 1H gross Margin 56.8%; est. 56.83%
Alert: HALISTER
Source: BFW (Bloomberg First Word)

Tickers
ITX SM (Industria de Diseno Textil SA)

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HALISTER1: INDIA RATINGS: Jai Parvati Forge Cut; Eastern Media Raised

INDIA RATINGS: Jai Parvati Forge Cut; Eastern Media Raised

(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
DOWNGRADES
  • Jai Parvati Forge
    • Long-term loan facilities cut to BBB- from BBB at Crisil
    • Cites declining trend in turnover
  • OCM
    • LT loan facilities cut to BBB- from BBB at Crisil
    • Expects business risk profile to deteriorate over the medium term
UPGRADES
  • Eastern Media
    • LT loan facilities raised to BB from BB- at Crisil
    • Expects improvement in business risk profile
  • Sandesh
    • LT bank facilities raised to AA from AA- at Care
    • Cites growth in advertisement income, improvement in profitability
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
SDSH IN (Sandesh Ltd)
0989932D IN (JAI Parvati Forge Ltd)

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