HALISTER1: RBI to Buy 200b Rupees of Indian Bonds/Mo. Until July: Nomura

RBI to Buy 200b Rupees of Indian Bonds/Mo. Until July: Nomura

(Bloomberg) -- RBI is now expected to buy 200b rupees/mo. of Indian govt bonds until July because of the higher currency in circulation outflows, Nomura analysts including Vivek Rajpal write in note dated May 16.
  • Sees OMOs pausing in Aug. and Sept., as liquidity is expected to turn neutral by Aug.; NOTE: RBI has bought 400b rupees of bonds so far in fiscal 2017
  • Forecasts 900b rupees ($13.5b) of bond purchases in 2H of FY2017, bringing total for full fiscal year to 1.8t rupees
  • Higher-than-expected April CPI is likely to keep rate-cut expectations at bay and to maintain 5-year NDOIS above policy rate; for 5-year NDOIS to break lower, market expectations of terminal rate need to be lowered
  • Remains comfortable with its recommendations of long 8.27% 2020 govt bond, long 8.27% 2020 bond vs pay 5-year NDOIS, and 2s5s NDOIS steepener
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Vivek Rajpal (Nomura Holdings Inc)

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UUID: 7947283

HALISTER1: USD/JPY May Test 50-DMA If Japan 1Q GDP Disappoints: Analysis

USD/JPY May Test 50-DMA If Japan 1Q GDP Disappoints: Analysis

(Bloomberg) -- USD/JPY may rally to test resistance at 50-DMA of 110.28 in short-term if Japan’s 1Q GDP undershoots forecasts, boosting prospects of govt stimulus and/or further BOJ easing, Bloomberg strategist David Finnerty writes.
  • Nation’s 1Q GDP grew 0.1% q/q SA after 0.3% contraction in 4Q, according to median est. of economists in Bloomberg survey; range of ests. are from -0.4% to +0.4%; data are due at 8:50am local time tomorrow
  • A failure of 1Q GDP to post a positive number could increase the probability of fiscal stimulus to help lift domestic demand; BOJ may also consider undertaking more QQE as a low GDP reading could reduce inflation and inflationary expectations
  • Prospects of fresh fiscal stimulus or additional QQE are likely to generate risk-on sentiment, thereby pushing both USD/JPY and Nikkei 225 higher
  • NOTE: David Finnerty is an FX strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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UUID: 7947283

HALISTER: Paulson Triples Stakes in Endo, Akorn as Other Hedge Funds Sell

Paulson Triples Stakes in Endo, Akorn as Other Hedge Funds Sell

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
ENDP US (Endo International PLC)
573991Z US (Paulson & Co Inc)
VRX CN (Valeant Pharmaceuticals International Inc)

People
John Paulson (Paulson & Co Inc)
Armel Leslie (Peppercomm Inc)
Rajiv De Silva (Endo International PLC)

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UUID: 7947283