HALISTER1: Asian Inflows May Be at Risk From Steeper Fed Hikes: Nomura

Asian Inflows May Be at Risk From Steeper Fed Hikes: Nomura

(Bloomberg) -- There is a risk of a negative impact on Asia from a steeper Fed rate hiking cycle, given that the global search for yield has led to large foreign investments in Asia’s debt markets, as well as Asia’s mature financial cycle, Dushyant Padmanabhan, Asia FX strategist at Nomura, says
  • For Asia FX, northeast Asian currencies most at risk due to their direct trade and investment links with the U.S. as well as from regional geopolitics and the impact of Trump’s policies toward China in particular
  • 10-year Treasury yield surged 20bps yesterday with a gauge of buyer appetite at an auction dropping to lowest level since 2009
  • Bloomberg JPMorgan Asia dollar index steady at 105.55, touched eight month low earlier at 105.29
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Source: BFW (Bloomberg First Word)

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Dushyant Padmanabhan (Nomura Holdings Inc)

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