HALISTER1: Japan’s 2-Year Bond Auction Draws Widest Tail Since Dec. 1998

Japan’s 2-Year Bond Auction Draws Widest Tail Since Dec. 1998

(Bloomberg) -- Japan sold 2.1t yen ($20b) in 2-year govt bond with tail, difference between avg and low prices, at 0.060, widest since Dec. 1998 and up from 0.008 at June 28 sale.
  • Auction outcome is “very bad,” says Naoya Oshikubo,
rates strategist at Barclays
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  • Lowest accepted price was 100.87, below est. 100.94 in Bloomberg survey of 12 primary dealers
  • Bid-to-cover ratio of 3.95, lowest since Sept. 2015, and down from 4.96 at prior sale
  • Average yield was -0.361%, marking record low, and down from -0.299% at previous sale
  • In secondary market, yield on 0.1% note due July 2018 rises 0.5 bp to -0.365%
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Source: BFW (Bloomberg First Word)

People
Naoya Oshikubo (Barclays PLC)

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HALISTER1: Art of Shadow Banking: How an Auction House Got Into the Picture

Art of Shadow Banking: How an Auction House Got Into the Picture

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Source: BN (Bloomberg News)

Tickers
BID US (Sotheby's)

People
Andrew Gray (JPMorgan Chase & Co)
Asher Edelman (Edelman LP)
Claude Monet
David Ganek (Apocalypse 22 LLC)
David Hall (Private Practice)

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HALISTER1: INDIA RATINGS: DS-Max Realty, Madhucon Raised

INDIA RATINGS: DS-Max Realty, Madhucon 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
UPGRADES
  • Ananya Finance
    • Long-term bank facilities raised to BB from BB- at Care
    • Cites improvement in financial-risk profile
  • DS-Max Realty
    • LT rating raised to BB+ from BB at ICRA
    • Cites healthy sales from projects
  • Madhucon Sugar and Power
    • LT rating raised to B+ from B at ICRA
    • Cites improved outlook for co.’s sugar business
  • Sri Lakshmi Kalavathi Cotton Traders
    • LT rating raised to BB from BB- at Crisil
    • Cites expectation of sustained improvement in liquidity
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Source: BFW (Bloomberg First Word)

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HALISTER1: INSIDE ASIA: Currencies Rise on Fed; Investors Await BOJ Meet

INSIDE ASIA: Currencies Rise on Fed; Investors Await BOJ Meet

(Bloomberg) -- Asian currencies advance as Fed reiteration of gradual approach to rate increases spur broad dollar weakness. Investors await outcome of BOJ’s two-day policy meeting.
  • Dollar is sold against Asia-Pacific currencies as FOMC statement fails to hint at rate hike in Sept., says Yuji Kameoka, chief FX analyst at Daiwa Securities
    • Though expectation for Fed rate hike was low, FOMC comments yday may trigger profit-taking action after recent USD rally
  • Yen set for a third day of gains this week while 20-year govt bonds advance
    • USD/JPY o/n implied vols highest since 2008; erratic moves in spot USD/JPY may be causing market participants to hesitate in taking cash position, using options instead, says Takuya Iwasaki, executive general manager of FX sales at Bank of America
    • Yen traders on edge after Abe underscores BOJ whiplash anxieties
    • BOJ seen easing monetary policy according to 32 of 41 economists surveyed by Bloomberg
    • Yen may strengthen even if BOJ eases policy tomorrow, Daiwa’s Kameoka says
    • Japanese bought net 679.3b yen overseas debt last week, according to figures released by Ministry of Finance in Tokyo
    • IMF says yen’s appreciation has brought it closer to fair value
  • Aussie and kiwi both strengthen against greenback
    • Broad dollar-basket selling lifts kiwi and Aussie, according to Asia-based FX trader, adding that NZD/USD buying from macro accounts triggers buy stops above 24- hour high
    • Australia’s 2Q export prices up 1.4% q/q vs est. 3% increase
  • Yuan poised for a third day rally after PBOC strengthens fixing to 3-week high
    • Authorities including CBRC noticed that burst of bubbles in property, securities investment and commodities sectors may worsen bad loan situation and even affect stability of banking system, 21st Century Business Herald reports
    • Tighter regulations on wealth-management products in China should lead to reallocation of portfolios, with managers increasing positions in bonds as they move from equities and non-standard assets, analysts say
  • Ringgit appreciates as crude rebounds from a week of losses
    • Govt was criticized for passing certain laws and National Security Council Act in particular has been deliberately misinterpreted, Prime Minister Najib said late Wednesday
    • NOTE: National Security Council Act takes effect Aug. 1
  • Baht set for a third day of strength
    • Thailand’s manufacturing production index probably increased 2.0% in June on year after 2.6% gain prior month, according to Bloomberg survey before data today
  • Rupiah extends gains as Mulyani Indrawati returns to finance minister role
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Source: BFW (Bloomberg First Word)

People
Yuji Kameoka (Daiwa Securities Capital Markets Co Ltd)
Takuya Iwasaki (Bank of America Corp)

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HALISTER1: INSIDE CHINA: Yuan Hits Multi-Week High as Asian Currencies Rise

INSIDE CHINA: Yuan Hits Multi-Week High as Asian Currencies Rise

(Bloomberg) -- Onshore and offshore yuan both strengthen along with other Asian currencies after FOMC meeting appeared to signal no great rush for Fed rate hike.
  • Onshore yuan gains 0.14% to 6.6607 per dollar, highest since July 4
  • Offshore yuan up 0.09% at 6.6656, strongest since July 1
  • PBOC strengthened CNY reference rate for third straight day, by 0.11% to 6.6597
  • Dollar Index down 0.37%, heading lower for fourth day
  • Yuan to rise today on supportive sentiment as Sept. Fed hike isn’t likely, Mizuho Bank Asian FX strategist Ken Cheung says
    • Could be short-lived, as BOJ may not deliver expected easing at Friday’s policy meeting; could trigger USD/JPY slide and risk aversion; July risk rally has been based on expectations of global easing
    • USD/CNY to remain stable below 6.70 near term; PBOC’s intention to stabilize yuan has cooled market expectations for further depreciation
  • Yuan still in line with fundamentals despite depreciation: IMF
  • With Fed hike less likely before Dec., EM Asian currencies will benefit in coming weeks from accommodative external liquidity, reflationary policies and steadier market sentiment, Scotiabank Asia FX strategist Gao Qi writes in note today
    • But risk-taking sentiment to remain vulnerable, particularly approaching Yellen’s Aug. 26 speech
  • Bank regulator said to plan tighter rules on wealth- management products, a person familiar with the matter said yesterday
    • Tigher WMP regulations would boost to China bonds, analysts say
  • Yield of 2.9% May 2026 govt bond falls 2 bps to 2.790%
  • CNY 7-day repo rate declines for second day, by 15.4 bps to 2.2509%, lowest since July 20
  • China to cut VAT tax for financial companies, ensure financing for small businesses: China National Radio
  • Small lending companies’ yuan loans fell 4b yuan in 1H: PBOC
  • World Bank and China Development Bank said to plan issue of SDR notes; seen supporting growing global role of yuan
  • ICBC Asia said to issue SDR-denominated bonds: Economic Information Daily
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Ken Cheung (Mizuho Financial Group Inc)
Qi Gao (Bank of Nova Scotia Asia Ltd/Singapore)

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HALISTER1: Taiwan Forwards May Eye 100-DMA If Growth Disappoints: Analysis

Taiwan Forwards May Eye 100-DMA If Growth Disappoints: Analysis

(Bloomberg) -- Slower-than-expected growth in 2Q could be the trigger for USD/TWD 1-mo. NDF to rally to 100-DMA resistance in near term, Bloomberg strategist Andrew Robinson writes.
  • Taiwan’s GDP probably grew 0.7% y/y after 0.68% contraction in 1Q, according to median est. in Bloomberg survey. Ests. range from -0.7% to +1.4%; data due 8:30am local time on July 29
    • Weaker growth could give impetus for CBC easing, with a cut to the 1.375% rate. This isn’t expected until 4Q 2017, according to a Bloomberg survey of economists
    • Separate survey of bond traders expect the Taiwanese central bank to cut the discount rate in 3Q this year
    • NOTE: Next policy meeting due in second half of Sept.
  • 2Q GDP growth data reported for competitor economies such as S.Korea and China beat median ests.
  • NDF could test 100-DMA, at 32.337 today; NDF hasn’t closed above this MA since March 2
  • 1-mo. NDF slides 0.2% to 31.912
  • NOTE: Andrew Robinson is an FX strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice
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Source: BFW (Bloomberg First Word)

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HALISTER1: US court deals major blow to Las Vegas Sands in case of Macau gaming licence

US court deals major blow to Las Vegas Sands in case of Macau gaming licence

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Source: SMP (South China Morning Post)

Tickers
LVS US (Las Vegas Sands Corp)

People
Li Gang (Macau Special Administrative Region)
Qian Qichen (People's Republic of China)
Ronald Reese (Las Vegas Sands LLC)

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HALISTER1: Reuters Top News: U.S. Treasury expands hunt for money laundering in real estate reut.rs/2acIhEB pic.twitter.com/3DECY0OwJS

Reuters Top News: U.S. Treasury expands hunt for money laundering in real estate reut.rs/2acIhEB pic.twitter.com/3DECY0OwJS

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Source: TWT (Twitter)

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Tweets from Major Media
Twitter Verified Handles

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