Halister News

(Bloomberg) -- JGBs gains across the curve after BOJ’s bond purchases while Governor Kuroda says theoretically, there is room to cut rate to minus 0.5%.

• 2-year yield down 2.5bps to -0.175%, 5-year yield falls 3bps to -0.175%, 10-year yield declines 3.5bps to -0.050%, 20- year yield slides 3bps to 0.430% and 30-year yield down 2.5bps to 0.675%
• “JGBs yield declines across the curve on strong outcome of BOJ’s bond purchases today, mainly medium tenor of around 5- year,” says Takenobu Nakashima, quantitative strategist at Nomura Securities by phone today
  • Super-long notes rallied on dip-buying demand from investors who maintain their holdings as some bonds mature, he added
• NOTE: JGBs worth 19.9t yen ($174b) will mature this month, finance ministry data show
• NOTE: BOJ’s offer to buy JGBs maturing 1-3yr and 5-10yr from secondary market drew less demand than previous operations on March 11, with falling bid-to-cover ratios
• Finance Minister Aso says he will closely watch government bond market
• Stiglitz tells Abe now is wrong time to raise Japan’s sales tax
• USD/JPY rises 0.2% to 113.39, fluctuating around 113.34, conversion line on ichimoku chart

(Bloomberg) -- Munich Re plans buyback of up to EU1b shares

• Sees EU1.9b-EU2.4b FY reinsurance result
• Sees EU250m-EU350m FY Ergo result
• Says Ergo target doesn’t include future restructuring expenses
• Sees EU50m-EU100m FY Munich Health result
• Sees ROI of 3% in 2016
• Confirms EU2b FY major loss budget
• NOTE March 15: Munich Re Names Joachim Wenning CEO to Succeed von Bomhard
• NOTE Feb.4: Munich Re Jumps Most in Four Years After Dividend Beats Forecast

(Bloomberg) -- Munich Re to publish final annual results. Fraport, Brenntag, Bilfinger to report full-year earnings. German top court hears suits by RWE, EON and Vattenfall over nuclear exit. Binding bids deadline for Vattenfall’s German lignite assets. Germany to sell bonds. Fed to announce rates decision. ALL TIMES CET WHAT TO WATCH:

• In the press:
  • Volkswagen Passat model recall faces delay in Europe: Bild
  • Ann-Kristin Achleitner to join Deutsche Boerse supervisory board: Handelsblatt

• Other company news:
  • Rocket will stick with Africa even if profits 7 years off: CEO

• Other news:
  • German top court hears suits by RWE, EON and Vattenfall over nuclear exit: Second day of hearing
  • Hanover airport closed on bomb alert, Bild reports

EARNINGS:

• Brenntag, FY, 7am, to see estimates click here
• Fraport, FY, 7am, to see estimates click here
• Bilfinger, FY, 7:30am, to see estimates click here
• Munich Re: final FY results, 7:45am, to see preliminary results click here
• Bechtle: FY, 10am, to see estimates click here
• BMW: annual press conference, 10am, to see preliminary results click here
• Deutsche Bahn, FY, 11am
• Other FY earnings:
  • Gerry Weber
  • Elmos Semiconductor
  • Siltronic

ECONOMY:

• 11am: Euro area construction output Jan. m/m (prev. -0.6%)
• 8am: Europe EU 27 new passenger car registrations

CENTRAL BANKS:

• No Bundesbank/ECB events scheduled

BOND SALES/PURCHASES:

• 11:35am: Germany to sell EU4b 0.5% 2026 bonds

GOVERNMENT:

• 1:00pm: Chancellor Angela Merkel previews Germany’s position on European Union summit starting the following day. 1 p.m. Bundestag
• 4:00pm: Merkel will deliver address at the general assembly of DIHK chamber of commerce
• 6:30pm: Finance Minister Wolfgang Schaeuble takes part in panel on “Europe’s Myth” along with two academics

CORPORATE EVENTS/CONFERENCES:

• BofAML Global Industrials & EU Autos Conf.: Continental AG
• Analyst/Investor meetings: Munich Re
• Roadshows: Adidas, Hugo Boss, Continental AG, Deutsche Post
• 9am: Energy Brainpool Trading Conference
• Deutsche Bank co-CEO Cryan speaks at Morgan Stanley Conference

MARKETS

• DAX Index lost 0.6% to 9,933.85
• Stoxx Europe 600 fell 1.1% to 340.86
• German 10YR bond yield 0.316%
• Bund future closed at 161.17
• EUR down 0.1% to $1.1096
• Brent crude up 1% to $39.12
• Gold up 0.1% to $1,233.22

TV HIGHLIGHTS: Selected Bloomberg TV guests, all times CET

• 7:30am: Mike Cherry, Federation of Small Businesses, national policy chairman
• 8:15am: Guy Grainger, Jones Lang Lasalle, CEO
• 10am: Holger Schmieding, Berenberg, chief economist
• 11am: Howard Davies, RBS, chairman
• 3:45pm: Jean-Claude Biver, Tag Heuer, CEO
• 4:30pm: Seema Malhotra, shadow chief secretary to the treasury
• 5:30pm: Alexander Dryden, JPMorgan Chase, strategist
• For event coverage, see LIVE

(Bloomberg) -- Market pricing and survey expectations suggest potential for a big AUD/USD correction if Thursday’s report shows job losses, according to Bloomberg strategist Michael G Wilson.

• This is first Bloomberg survey since August 2014 in which the lowest estimate still foresees net positive jobs growth
• Nation probably added 13,500 jobs in Feb., according to median est. of 28 surveyed economists; range: +3,200 to +25,000; data due at 11:30am Sydney; unemployment rate seen holding at 6.0%
• OIS are pricing in just a 15% chance of RBA easing at next meeting, down by half in the past month
• AUD/USD steady at 0.7460
• NOTE: Michael G. Wilson is an FX strategist who writes for First Word. The observations he makes are his own.

(Bloomberg) -- Here’s a roundup of debt rating changes of Indian cos. To get this story sent to your inbox in real-time, run NI INRATINGS , click on Display & Edit, then Set Alert Delivery. DOWNGRADES:

• Conveyor & Ropeway
  • Long-term loan facilities cut to D from B+ at Crisil
  • Cites instances of delay in servicing debt

UPGRADES:

• Precision Technik
  • LT loan facilities revised to BB+ from BB at Crisil
  • Cites continuous improvement in operating performance

• Sheela Foam
  • LT loan facilities revised to A from A- at Crisil
  • Expects group’s capital structure, financial risk profile to remain strong over the medium term

(Bloomberg) -- JGBs fall after BOJ decision yesterday to maintain policy and ahead of 20-year auction tomorrow, Shuichi Ohsaki, chief Japan rate strategist at BofAML, says in phone interview.

• Fading early rate cut possibility by BOJ provide adjustment pressure to short-and medium-term tenor, says Tokyo-based Ohsaki by phone
  • However, BOJ’s bond purchase today could support these short-to-medium term sectors
• NOTE: BOJ offers to buy 1-3yr, 3-5yr and 5-10yr govt bond, total 1.27t yen today
• Super-long bonds fall on profit-taking from investors ahead of fiscal year-end and auction concession before 20-year debt sale tomorrow
• 2-year yield steady at -0.150% and 5-year yield rises 0.5 bp to -0.140%; 10-year yield is little changed at -0.015%
• 20-year yield climbs 1 bp to 0.470%, 30-year yield adds 2.5 bps to 0.725%