Ten-Year Falls Like Cherry Blossom in Gentle Spring Rain
Currency devaluations reflect silently on still and glassy water.
Stocks to open generally mournful and subdued.
Auspicious update, below.
From Marc to Market:
Overview: The US dollar has begun the new week consolidating in a mixed fashion against the G10 currencies. Bank of Japan Governor Ueda remains circumspect and did not provide guidance about next month's central bank meeting. Without positive guidance, the market sold the yen, but the swaps market shows about 13 bp of tightening has been discounted, up a couple of basis points from a week ago. Leave aside the New Zealand dollar, which is also under pressure ahead of next week's RBNZ meeting that is expected to result in another 50 bp rate cut, the other G10 currencies are mostly +/- 0.15%. Emerging market currencies are also narrowly mixed. The South African rand is on top with a 0.4% gain and the Mexican peso is on the bottom of the leaders' board with a 0.35% loss.
European benchmark yields are mostly 4-6 bp higher today. The 10-year UK Gilt yield and the 10-year US Treasury yield are up about two basis points. The two-year yield is firm, slightly above 4.30%. It has risen in all but one of the past eight weeks and has risen by around 75 bp. Equities have begun the new week in mixed fashion. Japanese, Chinese, Indian, and Taiwanese shares fell. South Korea's Kospi managed to resist the tug after Samsung announced a ($7 bln) share buyback program. Europe's Stoxx 600 is off about 0.25% and US index futures are trading with a small firmer bias. Gold is trying to end a six-day skid and is up 1.1% today to near $2592. January WTI slipped to a new low for the month today near $66.55 but as recovered to new session highs in Europe near $67.60 before stalling....
....MUCH MORE
