Halister News

(Bloomberg) -- Asian currencies tumble and sovereign bond yields slide to record lows, as investors hunt for haven assets such as gold and yen amid worries about Italian banks and Brexit fallout. Most Southeast Asian mkts are closed today.

• There’s a long list of woes including trend in JPY, surging risk in Italian banks, and bond yields, Michael Every, head of financial markets research at Rabobank
  • Risk-off sentiment fueled by CNY nearing 6.7 level post Brexit
• 10-yr Treasury yield falls to record low 1.3499% today; 30- yr also reaches yday’s record low of 2.1294%
  • U.S. Treasury yield may fall toward 1.1%-1.2% as Brexit has raised uncertainty for the economy and monetary policy, and there is risk of U.S. recession later this year or in 2017: MassMutual Life Insurance
• Australia 10-year bond yield slides 10 bps to record low 1.846%, while same tenor in Japan falls to record minus 0.27%
• Gold price rises for a sixth day, by 0.78% to 1,367, highest since March 2014
• USD/JPY breaks below 101 while 20-year govt bond yield falls below zero for first time
  • Downside risk for USD/JPY remains, says Yujiro Goto, London-based senior FX strategist at Nomura, adds that expectations for further easing by BOJ this month are high, and verbal intervention is likely when pair falls toward 100
• Yuan falls to weakest since Nov. 2010, after PBOC cuts the fixing rate for a second day
  • Revises end-4Q USD/CNY forecast to 7.0 from 6.9 previously after Brexit, Bank of America Merrill Lynch writes in note
  • Authorities are cautiously guiding USD/CNY fixing weaker to prepare for mkt contagion risk from eurozone, says Christy Tan, Asia head of markets strategy at NAB
  • PBOC may cut reserve requirement twice and lower lending rate once in 2H of this year, Jean-Louis Nakamura, chief investment officer at Lombard Odier says in an interview
  • China junk bond spread widens as summer default lull seen ending
• Aussie declines for a second day while 10-yr yield reaches 1.840% record low on selloff in risk assets and as vote counting continues
  • PM Turnbull’s coalition won 70 seats in the 150-member lower house to Labor’s 67, with independents and minor parties on five, and eight districts still in doubt, according to a projection by ABC with 80% of the vote counted
  • Incoming government should address “very real prospect” of a sovereign rating downgrade as priority, NSW Premier Mike Baird says in interview
  • RBA’s Debelle will be involved in panel participation at industry event later this afternoon
  • NZD falls as average whole-milk powder winning price at auction declines to $2,062/MT from $2,118/MT at previous auction
• Won headed for third straight day, heading to longest losing streak in 10 weeks
  • Govt will hold meeting to discuss ways to boost trade and investment
• Baht declines
• Singapore, Malaysia, Indonesia, Philippines markets are closed for public holidays