INSIDE ASIA: Risk-Off Sends Yields to Record Lows, Yen Rallies
Source: BFW (Bloomberg First Word)
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Yuji Kameoka (Daiwa Securities Capital Markets Co Ltd)
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(Bloomberg) -- Asian currencies and stocks fall on risk-off sentiment while yen rallies on haven demand. Yields in JGBs and Asian sovereign bonds including Taiwan and S. Korea’s hit record lows.
Alert: HALISTER1- Dollar Index climbs for third day while MSCI Asia Pacific stock index is set for 3-day loss; Nikkei 225 lost as much as 3%
- Drop in crude oil prices and stock losses amid growing concern over Brexit are hurting risk sentiment, weighing on EM currencies and leading to yen buying, says Yuji Kameoka, chief currency analyst at Daiwa Securities by phone
- Yen hits highest since May 3; 10-year, 5-year and 20-year JGB yields hit record lows of -0.165%, -0.270% and 0.170% respectively
- USD/JPY falls below 200-WMA for first time since 2012
- JGB yields hit record low as global bonds rally on mounting risk-off, according to Barclays
- Eleven out of 40 economists forecast BOJ to ease monetary policy at meeting on June 15-16, according to Bloomberg Survey
- Onshore yuan declines as much as 0.45% to 6.5898, most since April 1st; offshore yuan gains
- China sets yuan fixing at 6.5805 vs 6.5593 day earlier
- May industrial production rises 6.0% y/y matching est.; May retail sales increases 10.0% y/y vs est. 10.1% and May fixed assets ex rural up 9.6% ytd y/y vs 10.5%
- Indonesia’s rupiah set for two day of losses
- Deposit insurance agency lowers 2016 loan growth est. to 10% from 13%, Investor Daily Indonesia reports
- Nation markets 3-year samurai bonds at yen swaps plus 95 bps and 5-year samurai at swaps plus 125 bps
- Philippine’s peso heads for three-day loss
- 2016, 2017 economic targets to be reviewed, possibly lower, BusinessWorld reports, citing Budget Secretary- designate Diokno who finds 2016 target “on the high side”
- 2016 GDP growth target of 6.8%-7.8% remains achievable on continued consumption, BSP Deputy Governor Guinigundo said late Friday
- Taiwan dollar weakens first time since May 30 as mkts return from long 4-day weekend
- Cabinet plans to raise estate and gift tax to 20% from 10%, sales tax to 5.5% from 5% to help finance long-term care as the population ages, United Daily reports
- Thailand’s baht firmer after two-day decline
- BOT isn’t too concerned by potential for baht fluctuations linked to external factors such as Brexit, Deputy Governor Mathee Supapongse said over the weekend
- King Bhumibol’s health has improved, royal palace says
- Other Asian currencies decline on risk-off sentiment in market
- Won and ringgit set for two days of losses
- India’s May CPI due at 8pm HK time, est. 5.60% y/y vs 5.39% in April
Source: BFW (Bloomberg First Word)
People
Yuji Kameoka (Daiwa Securities Capital Markets Co Ltd)
To de-activate this alert, click here
UUID: 7947283