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Currency strategists are predicting that the yen could slide back to as low as 160 against the dollar due to uncertainty surrounding upcoming elections in Japan and the US. Japanese authorities may intervene if the yen reaches these levels, with the country's finance minister closely monitoring the foreign exchange market. While some expect the yen to weaken further in the short term, others believe it may strengthen once political risks subside. The market is divided over the impact of US monetary policy on the yen's value, with factors such as robust US data and caution from the Federal Reserve influencing the currency pair. [Extracted from the article]

The article discusses the impact of a global debt selloff on Japan's bonds, with yields on 40-year government debt reaching a 16-year high. Traders are reassessing their positions due to the strength of the US economy, the prospect of a Donald Trump election victory, and uncertainties surrounding Japan's upcoming lower house election. The article also highlights the potential for rate hikes by the Bank of Japan and the impact of political uncertainties on Japanese yields. [Extracted from the article]

Japan's 40-year government bond yield has reached its highest level in 16 years, indicating speculation that the Bank of Japan may raise interest rates in the near future. Despite expectations that the central bank will maintain its benchmark rate at 0.25%, there is a 66% chance of a quarter-percentage-point rate hike by January. Factors such as comments from US Federal Reserve officials and the yen's depreciation against the dollar are contributing to the case for a rate increase. The International Monetary Fund is optimistic about Japan's inflation sustainability and anticipates gradual interest rate hikes by the BOJ. Life insurers reducing their holdings of long-term bonds due to regulatory compliance is also putting upward pressure on 30- and 40-year sovereign bond yields. [Extracted from the article]

Nippon Life Insurance Co. plans to decrease its holdings of yen-denominated bonds in the second half of the fiscal year ending March 2025 in anticipation of higher interest rates. The company sold low-yielding assets in the first half and expects Japan's 10-year yield to rise to 1.4% by the end of the fiscal year. Nippon Life also reduced its holdings of hedged foreign bonds in the first half but plans to increase them in the second half. [Extracted from the article]

Fukoku Mutual Life Insurance Co. predicts that the Bank of Japan (BOJ) will raise interest rates up to two times by the end of March. The company plans to invest in Japan's super-long government bonds if yields rise to their desired levels. Fukoku is the first life insurer in Japan to announce investment plans for the second half of the fiscal year. They anticipate that the BOJ will raise rates in December or January and believe that Japan's economy and prices will remain stable. Fukoku plans to increase its holdings of domestic bonds and stocks, while avoiding hedged foreign bonds due to high costs. They expect Japan's currency to stay within a certain range and believe that domestic and foreign stocks will be supported by interest rate cuts overseas and strong corporate earnings. [Extracted from the article]

Japan's life insurers, with a combined invested assets of $2.6 trillion, are expected to gradually increase their purchases of domestic bonds in the second half of the fiscal year. The insurers' investment plans for the next six months will be closely watched due to their potential impact on global debt markets. While the firms are major investors in super-long bonds, they have been hesitant to rush into these securities due to a pause in the rise of longer Japanese government bond yields. The insurers may consider buying 20-year government bonds if the yield reaches 2%, and 30-year debt if the yield increases to 2.2%. However, they are unlikely to invest in US Treasury bonds due to high hedging costs, and may instead focus on US equities and credit. The risk of a sharp rise in the yen has diminished, making a slight increase in holdings more likely. The largest life insurers in Japan include Nippon Life Insurance Co., Sumitomo Life Insurance Co., Dai-ichi Life Insurance Co., Japan Post Insurance Co., and Meiji Yasuda Life Insurance Co. [Extracted from the article]

Former defense minister Shigeru Ishiba has won the leadership of Japan's ruling party, causing the yen to rally against the dollar and Japanese stock futures to fall. The currency strengthened by 1.4% on the news, after weakening earlier in the day. Ishiba is seen as supportive of the Bank of Japan's plan to gradually raise interest rates, which led to speculation of political pressure on monetary policy. The market is now focusing on the narrowing interest rate gap between the US and Japan, as well as the Federal Reserve's next moves. [Extracted from the article]

Shigeru Ishiba has been voted leader of Japan's ruling party, causing the yen to rally against the dollar and stock futures to fall. Ishiba, who is seen as supportive of the Bank of Japan's plan to gradually raise interest rates, won against opponent Sanae Takaichi, who opposed rate hikes. The market is now focusing on the narrowing interest rate gap between the US and Japan, with uncertainty surrounding the speed and size of the Federal Reserve's next moves. [Extracted from the article]

The yen has weakened against the dollar and Japanese bond futures have risen as Sanae Takaichi and Shigeru Ishiba head to a run-off vote for the leadership of Japan's ruling party. This has led to speculation of political pressure on monetary policy and traders are betting on the election results. Takaichi, who could become Japan's first female prime minister if elected, has argued against raising rates and this has contributed to the depreciation of the yen. The yield on Japanese government notes has dropped as a result. [Extracted from the article]

The yen has weakened against the dollar and Japanese bond futures have risen as traders speculate that Sanae Takaichi, Japan's economic security minister, has an increasing chance of becoming the country's next leader. The currency declined by 0.8% to 145.93, and sovereign bonds rallied as investors await the results of the ruling Liberal Democratic Party's vote. Takaichi, who could potentially become Japan's first female prime minister, has argued against raising rates and has gained support from former prime minister Taro Aso. Options traders have priced in a 35% chance of Takaichi winning the election. [Extracted from the article]

The yen has weakened against the dollar and Japanese bond futures have risen as traders anticipate that Sanae Takaichi, Japan's economic security minister, will become the country's next leader. The currency fell by 0.5% to 145.06, and sovereign bonds rallied as investors await the results of the ruling Liberal Democratic Party's vote. Takaichi, who has argued against raising interest rates, could potentially become Japan's first female prime minister. Options traders have priced in a 35% chance of Takaichi winning the election. [Extracted from the article]

(Bloomberg) -- The yen extended its gains to as much as 0.7% against the dollar as Bank of Japan Governor Kazuo Ueda said the central bank is still on a path toward further interest rate hikes if the economy and prices are in line with its expectations.Ueda also said in response to questions in parliament Friday that the recent market turmoil was due to concerns about the US economy, but that he remains cautious on the unstable financial markets.The yen rose to as strong as 145.30 per dollar. Japanese government bond futures fell 0.23 to 144.65 as of 11:14 a.m. in Tokyo.©2024 Bloomberg L.P.By Mia GlassReported by Author [Extracted from the article]

The yen has surged to its strongest level against the dollar since March after the Bank of Japan (BOJ) raised interest rates and announced plans to reduce bond purchases. The currency has climbed over 2% against the greenback, breaking through the key 150-per-dollar level. This rally comes as carry trades, which use low-yielding currencies like the yen to fund purchases in higher-yielding currencies, have rapidly unwound. The BOJ's decision to raise rates and cut bond purchases is seen as a small step towards monetary policy normalization, and further rate hikes could strengthen the yen. [Extracted from the article]

The yen has surged to its strongest level against the dollar since March after the Bank of Japan (BOJ) raised interest rates and announced plans to reduce bond purchases. The currency has climbed over 2% against the greenback, breaking through the key 150-per-dollar level. This rally comes as carry trades, which use low-yielding currencies like the yen to fund purchases in higher-yielding currencies, have rapidly unwound. The BOJ's decision is seen as a small step that could potentially lead to a larger trend of rate hikes. The focus now shifts to the Federal Reserve's monetary policy decision and Chair Jerome Powell's news conference to determine if the US is moving closer to lowering interest rates, which would further support the yen. [Extracted from the article]

The Japanese yen has surged to its strongest level against the US dollar since March after the Bank of Japan (BOJ) raised interest rates and announced plans to reduce bond purchases. The yen has gained over 1% against all major currencies, breaking through the key level of 150 yen per dollar. This rally has been fueled by the unwinding of carry trades and the anticipation of a hawkish decision by the central bank. The BOJ's actions indicate a shift in policy and a focus on longer-term inflation projections. [Extracted from the article]

The Japanese yen has strengthened to its highest level against the US dollar since March after the Bank of Japan (BOJ) raised interest rates and announced plans to reduce bond purchases. The yen has been rallying in recent weeks due to the unwinding of carry trades, where low-yielding currencies like the yen are used to fund purchases in higher-yielding currencies. The BOJ's decision to raise rates and cut bond purchases is seen as a major shift in policy and has led to a further rally in the yen. [Extracted from the article]

The Bank of Japan's decision to raise interest rates and reduce bond purchases has caused the yen to surge to its strongest level against the dollar since March. This move has sparked a rapid rally in the currency, with the yen climbing more than 1% against all of its Group-of-10 peers. The yen has also benefited from the unwinding of carry trades, leading to a rally of over 7% from its 38-year low against the dollar. The Bank of Japan's decision is seen as a major development that could structurally change the picture of carry-trade positioning. [Extracted from the article]

The Bank of Japan's decision to raise interest rates and reduce bond purchases caused the yen to rise 1% against the dollar and government bonds to drop. The BOJ's move was anticipated by traders, as the central bank had signaled its intention to taper bond buying. The initial pace of the bond buying cuts was slightly slower than expected, but still more aggressive than market forecasts. The yield on 10-year bonds rose 6 basis points, while the yield on two-year notes reached a 15-year high. The Topix stock index closed 1.5% higher, led by a surge in banking shares. The BOJ's decision is seen as a hawkish move, and the pressure on the yen is expected to continue if the Federal Reserve does not indicate a September rate cut. [Extracted from the article]

The Bank of Japan's decision to raise interest rates and reduce bond purchases has led to an increase in the value of the yen and a decline in government bonds. The currency had already been rising in anticipation of the decision, and the BOJ's plan to taper bond buying is seen as more aggressive than expected. The yield on benchmark 10-year bonds rose, while the Topix stock index closed higher. The BOJ's move is considered one of its most hawkish, and the pressure on the yen will likely continue if the Federal Reserve does not indicate a rate cut in September. [Extracted from the article]

The Bank of Japan (BOJ) raised interest rates, but the yen still dropped due to the wide yield differential between Japan and other major economies. Traders had anticipated the rate hike but are now unsure if further tightening will be enough to discourage yen-funded carry trades. The currency weakened slightly against the dollar, while Japanese government bond yields rose. The BOJ's decision to raise rates and reduce bond buying reflects its commitment to normalizing policy. [Extracted from the article]

Norinchukin Bank, a century-old agricultural bank in Japan, has announced plans to sell $63 billion of low-yielding US and European government bonds due to rising borrowing costs. The bank warned that losses for this fiscal year could triple previous estimates. This move highlights the risks faced by financial institutions in a world of higher-for-longer interest rates, as many investors had bet on more aggressive rate cuts. Norinchukin is now restructuring its portfolio, selling off a third of its sovereign holdings and shifting to other assets such as collateralized loan obligations and domestic and overseas bonds. [Extracted from the article]

Norinchukin Bank, a major Japanese agricultural bank, has announced plans to sell $63 billion of low-yielding US and European government bonds due to rising borrowing costs. The bank warned that losses for the fiscal year could reach $9.5 billion, triple the previous estimate. This move highlights the risks faced by financial institutions in a world of higher-for-longer interest rates, and serves as a reminder of the dangers still present in the financial system. Norinchukin is now restructuring its portfolio, selling off a third of its sovereign holdings and shifting to other assets. [Extracted from the article]

(Bloomberg) -- Hedge funds ramped up their bearish Treasuries bets to a record last week just as yields surged toward multi-month highs, while more traditional investors were burnt having boosted wagers in the opposite direction with similar conviction. Asset managers on the other hand may continue to buy Treasuries as worries around slowing US growth spur bets for eventual rate cuts, according to Kenta Inoue, senior fixed-income strategist at Mitsubishi UFJ Morgan Stanley Securities Co. in Tokyo. [Extracted from the article]

Instead, resilient economic data and better-than-forecast earnings are persuading traders the Fed will tame inflation without a severe slowdown, leading them to demand higher yields to own longer maturities. (Bloomberg) -- The Treasury yield curve has steepened this week, but the shift is unnerving investors as it comes through a painful selloff in longer bonds rather than the rally in shorter debt most expected. [Extracted from the article]

(Bloomberg) -- The Treasury yield curve has become far less inverted this week, but the shift is unnerving investors as it comes through a painful selloff in longer bonds rather than the rally in shorter debt most expected. The slide in longer debt is pushing some investors to abandon bets the sector would outperform as Federal Reserve policy tightening leads to a recession. [Extracted from the article]