BOJ buying 430bn yen of bonds with 5 to 10 years remaining unitl maturity – a cut from last time around when the bought 450bn yen If you are chasing a narrative for why yen is up , there is one for you (note the auction results came out after the yen had gained, so…
Reuters latest poll of economists on the US economy and Federal Reserve Citing: (flattening yield curve suggests investors believe economic growth and inflation will slow)
A beat for the ‘headline’ result Tankan Large Manufacturing Index, 19. Matches Q3 and a beat of estimate. – expected 18, prior was 19 Tankan Large Non-Manufacturing Index, 24. Beat here also, and ahead of Q3.
The Federal Open Market Committee meeting December 19 an 20 is about how many interest rate hikes there will be in 2020 Sound about right, yep. More: – expects Fed to lower growth and rate increases for next year Forecasts from MS:
From Reuters survey of economist on Japan, current BOJ policy of the Bank of Japan: – short-term interest rates at minus 0.1% – long-term rates around zero % Economists surveyed by Reuters expect these to remain in place until mid-2020 (at least)
You heard it here first ladies and gentlemen: People’s Bank of China injects 286bn yuan (renewing a 286 bn yuan 1yer MLF maturing today) – 1 year medium term lending facility We have some data coming from China at 0200GMT
People’s Bank of China TGIF onshore yuan mid rate PBOC skips open market operations again today – 36th session in a row – no RRs mature today, neutral from the bank Spidey sense tingling there may be a MLF from the Bank today ….
Comments from Draghi – Monetary policy is very accommodative – The drivers of the economic recovery are still in place, consumption continues to grow, driven by increases in disposable income The euro is down to 1.1339 from 1.1375 on the shift to
Euro lower on the headline The euro is lower on the tilt downward in the balance of risks. This sounds like it’s setting up for a push-out in forward guidance (through the summer) in the next meeting or two.
The latest quarterly ECB forecasts: The prior forecasts were from September Forecasts for GDP growth: – 2018 1.9% vs +2.0% prior – 2019 1.7% vs +1.8% prior Inflation forecasts revised for this year but down later: