BOJ INTEREST RATES
Sensex jumps 1,100 pts from day’s low, Nifty closes above 22,750 as D-St rebounds after 4-day losses. Is this relief rally sustainable?
On Monday, the Indian stock market experienced a notable rebound, with the Sensex and Nifty indices recovering about 2% after previous declines. Major players like Kotak Mahindra Bank and Adani Ports contributed to this surge, boosting investor confidence. However, analysts caution against potential risks due to rising crude oil prices and economic uncertainties, indicating that while there's room for recovery, careful stock selection remains essential.
Global Market: BOJ nears historic inflation milestone, shifts focus to rate hikes
The Bank of Japan is expected to declare its nearly 14-year battle to achieve 2% inflation successful while keeping interest rates unchanged at 1.25%. With wage growth and inflation expectations strengthening, policymakers may signal further tightening, potentially in December, as they balance persistent price pressures against economic growth and financial stability.
Global Market: Japan bond yields edge higher ahead of key central bank meetings
Japanese government bond yields edged higher as investors assessed the monetary-policy outlook ahead of meetings by the Bank of Japan and the US Federal Reserve. Markets expected both central banks to keep rates unchanged while monitoring signals about possible December rate increases, inflation and economic growth.
Charting the global economy: Euro area business activity cools
The euro area’s private sector slowed more than expected in October, weighed down by France as the region’s No. 2 economy grapples with fiscal and political tensions.
Bank of Japan warns of risks from AI market shock, cyberattacks
"If expectations regarding the profitability of AI-related investment were to decline, shocks could be amplified, mainly through portfolio adjustments in the foreign NBFI sector, and the effects could spill over to Japan," it said.
Safe-haven demand pushes Japan’s 10-year yield to two-month low
Japanese government bonds saw a rally on Friday, leading to the benchmark 10-year yield hitting a two-month low. This surge occurred in response to a global selloff in tech stocks, prompting investors to flock to safer investment options. The approaching Bank of Japan policy meeting is the center of attention as market watchers analyze the implications for inflation and possible interest rate shifts.
- Go To Page 1
Global Market: Japan’s core inflation accelerates, putting BOJ rate hikes in focus
Japan’s core inflation rises to 2.1% in September, exceeding the Bank of Japan’s 2% target for the first time in nine months. Higher energy costs, yen weakness and AI-related demand could strengthen the case for further interest rate hikes.
Global Market: Japanese banks see rising corporate loan demand ahead of BOJ meeting
Japanese banks report rising corporate funding demand despite the Bank of Japan’s 1.25% interest rate, reinforcing expectations of further monetary tightening. Persistent inflation risks, resilient lending and government concerns will shape the central bank’s upcoming policy decision.
Global Market: Japanese bond yields fall to multiweek lows ahead of BOJ meeting
Japanese government bond yields fell to multiweek lows on Thursday as geopolitical tensions and inflation concerns boosted safe-haven demand. The 10-year yield dropped to 2.88%, while investors awaited the Bank of Japan’s policy meeting, with markets weighing potential rate hikes and global economic uncertainties.
Global Market: BOJ's Himino says Japan inflation near 2% target, signals further rate hikes
Bank of Japan Deputy Governor Ryozo Himino says underlying inflation is nearing the central bank’s 2% target, while accommodative financial conditions and rising cost pressures strengthen expectations of further interest rate hikes.
Global Market: Japanese government bond yields fall as safe-haven demand returns
Japanese government bond prices rose for a third session as attractive yields and safe-haven demand boosted investor interest. Record demand at a 20-year bond auction supported the recovery, while global yields declined. Economists expect the Bank of Japan to raise interest rates to 1.50% in December, though October rates may remain unchanged.
Japan's 20-year bond yield falls sharply after strongest auction on record
Japan's 20-year government bond yield saw a notable decline following a record demand from its recent auction. This drop marked the lowest yield since early September, driven by investor confidence in the Bank of Japan's interest rate stability. The strong auction signals a cautious sentiment among investors, influenced by recent global developments. Other bond yields mirrored this downward trend, showcasing broader market behaviors.
Bank of Japan may raise inflation forecast, stand pat on rates, sources say
The Bank of Japan plans to slightly upgrade its fiscal year 2027 inflation forecasts this month. Interest rates are expected to remain stable at 1.25% during the upcoming policy meeting in late October. While inflation risks are present, there is no immediate urgency for further rate hikes. Recent data indicates that inflationary pressures are not escalating significantly at this time.
Global Market: Euro falls as French political unrest, high energy prices weigh on sentiment
The euro weakened amid elevated energy prices and renewed French political uncertainty, while investors reassessed the outlook for US growth, interest rates and the dollar. The yen, yuan and Indonesian rupiah also moved as markets weighed central bank signals and economic risks.
Global Market: Japan bond yields fall as US tech selloff fuels safe-haven demand
Japanese government bond yields fell as a selloff in US technology stocks triggered demand for safer assets. Prime Minister Sanae Takaichi’s pledge to control debt issuance also supported sentiment, while Bank of Japan rate expectations remained in focus.
Dollar heads for weekly loss as Fed hike bets fade, AI jitters linger
This week, the dollar faced a notable drop due to decreased expectations for interest rate increases from the Federal Reserve. Federal officials' remarks have led to steadying Treasury yields, which in turn weakened the dollar's position. Concurrently, the euro and yen gained ground, with the euro nearing a weekly rise. Investors are increasingly wary of fiscal risks, especially as shifts in economic conditions unfold.
Global Market: Japan five-year bond yield steady after strong demand at auction
Japan’s five-year government bond yield held steady at 2.34% on Wednesday after strong demand at a Ministry of Finance auction. Solid bid-to-cover ratios, easing French bond yields, and growing market expectations that the Bank of Japan is nearing the end of its rate hike cycle buoyed investor appetite.
Global Market: Eurozone bond yields fall as tech stock selloff boosts safe-haven demand
Eurozone government bond yields decline as renewed turbulence in technology stocks drives demand for safe-haven assets. Germany’s 10-year yield falls to 3.43%, while US Treasury yields also retreat. However, fiscal concerns and interest-rate uncertainty continue to cloud the outlook for global bond markets.
Global Market: BoE's Megan Greene says UK interest rates may not be restrictive enough
Bank of England policymaker Megan Greene said the IMF’s upward revision to the UK’s economic growth forecast supports her view that monetary policy remains insufficiently restrictive. She warned that delaying interest rate hikes could prolong inflationary pressures, highlighting divisions among policymakers over balancing inflation control against economic growth and borrowing costs.
Global Market: Hong Kong dollar nears weak side of trading band, raising prospect of HKMA intervention
The Hong Kong dollar neared the weak end of its trading band against the US dollar, raising the possibility of Hong Kong Monetary Authority intervention to defend its peg. Weak equity performance, subdued investment flows, and rising US interest rates have pressured the currency, though analysts expect the linked exchange rate system to remain stable.
Mortgage hedging adds selling pressure to US Treasury market as yields surge
Rising US Treasury yields and mortgage rates have triggered increased mortgage-related hedging, adding selling pressure to the bond market. However, analysts expect the impact to remain limited compared with previous selloffs, as refinancing incentives decline and the mortgage market shrinks. Oil prices, inflation expectations, and Federal Reserve policy remain key drivers of yields.
Global Market: Japan bond yields diverge as investors weigh inflation, BOJ outlook
Japanese government bond yields moved in opposite directions on Tuesday, with shorter-term yields rising and longer-dated yields falling as investors assessed inflation pressures, wholesale price data and the Bank of Japan’s policy outlook.
Global Market: Tokyo Financial Exchange unveils futures to hedge BOJ rate volatility
Tokyo Financial Exchange will launch a futures contract linked to the Bank of Japan’s overnight call rate to help investors hedge rising interest-rate volatility. The move comes as markets anticipate further BOJ hikes, with the central bank’s policy rate at 1.25%. Growing demand for rate hedging reflects Japan’s shift away from ultra-loose monetary policy.
Foreign investors pull out $26.3 billion from emerging markets in September as hawkish Fed pushes US Treasury yields higher
Foreign investors pulled $26.3 billion from emerging-market stocks and bonds in September due to rising US yields. The hawkish Federal Reserve's interest rate hike influenced this first outflow since June. Additionally, heavy foreign selling in South Korea resulted in a significant decrease in emerging-market equities. While fixed-income assets attracted $246 billion this year, equities saw year-to-date outflows of $113.9 billion.
Global Market: JGB yields ease as markets weigh BOJ rate-hike outlook
Japanese government bond yields declined on Wednesday, tracking softer global yields despite Bank of Japan policymaker Ayano Sato supporting further rate hikes. The 10-year JGB yield fell to 3.085%, while the 30-year yield dropped to 4.205%. Investors remained divided over how tighter BOJ policy could influence longer-term bond yields and market expectations.
Global Market: BOJ seen nearing 2% inflation target as markets eye December rate hike
The Bank of Japan may signal later this month that underlying inflation has reached its 2% target, strengthening expectations for a December rate hike. While policymakers remain cautious after recent increases, steady wages, rising prices and yen weakness could support further tightening as the BOJ gradually normalises monetary policy.
Global Market: BOJ's Uchida warns AI boom could trigger market correction
Shinichi Uchida, the Deputy Governor of the Bank of Japan, underscored the significant influence of artificial intelligence on the financial landscape. He noted that escalating asset prices could trigger market corrections if anticipated AI returns fail to materialize. Uchida also suggested that robust demand for AI might alter Japan's natural interest rates.
BOJ says AI boom may have eased financial conditions, warns of market risks
Bank of Japan Deputy Governor Shinichi Uchida said the global AI boom may have eased financial conditions by stoking demand and boosting asset prices, but warned of the risk of a market pullback if expected profits fail to materialize.
Global Market: BOJ policymakers see scope for faster rate hikes as inflation pressure builds
Bank of Japan policymakers saw scope for faster interest rate hikes as persistent inflationary pressures raise concerns about price growth exceeding the central bank’s 2% target. A summary of its September meeting showed support for further tightening, although some policymakers argued against rushing and stressed the need to monitor economic developments.
Load More
