Halister News

(Bloomberg) -- Govt bonds decline as global selloff deepens, with yields also rising in U.S. and Europe, and Japanese stocks climbing. USD/JPY at highest since July 29 as U.S. data boost bets of Fed rate increase this year.

• BOJ bond buying isn’t helicopter money or monetization: BOJ Governor Kuroda
• JGBs see downward pressure because in addition to rising U.S. Treasury yields, recent risk-off sentiment seems to be turning around, leading to gains in stock prices and weaker yen/stronger dollar, says Naomi Muguruma, a senior market economist at Mitsubishi UFJ Morgan Stanley Securities
  • Super-long sectors remain weak as BOJ officials’ remarks on Oct. 27 probably aimed to halt recent flattening of the curve
• NOTE: BOJ Governor Kuroda said it wouldn’t be strange for longer-term rates to rise a bit, while Deputy Governor Iwata said doesn’t see need to drive down yields longer than 10 years
• Yield on 30-year JGB rises 1bp to 0.51%; 40-year up 1.5bp to 0.6%
• December 10-year govt bond futures approaching key short- term support area near Oct. 24 low at 151.62, below which an extended decline toward 151.48 is possible: charts
• September core consumer prices -0.5% y/y, matching est.; story here
  • Household spending dropped 2.1% y/y in September vs est. -2.7%
• USD/JPY up 0.1% to 105.36; intraday high of 105.42