Published at 02:27 (GMT) 28 Mar
PM Shinzo Abe says rethinking GPIF portfolio part of investment improvements. Important for Japan to limit risk of long-term Japan yields jump. Will do everything to ensure bond market stability. To keep working on maintaining trust in Japan bonds/ JGBs.
On FX, more pressure from PM Abe on the mammoth GPIF to be more aggressive in its portfolio allocation to enhance returns. Pressure to shift funds into more aggressive sectors - stocks and overseas assets? Could see new waves of GPIF, pension funds outflows in new FY14/15 from April 1 next week. As PM Shinzo Abe, government hope the shift for greater returns, will also help cushion the impact of the sales tax hike?
USD/JPY, Cross/JPY could see more upside on GPIF, pension funds, public funds, lifers demand for overseas assets. As markets continue to wait for signs of the expected "huge" portfolio shift/ capital flows upon "Abenomics". USD/JPY at 102.15-20, bids at 102 lows, weak stops above 102.30-35. More offers 102.40-50, stops above 102.55-60.
AUD/JPY up at 94.95-00, up from 94.60-65 earlier, at fresh 5-month highs. Capped by speculation of good options related sales ahead of 95.00 Option barriers. But stoploss building above 95.05-10. 2-way interest from Japanese banks and funds. But real interest to buy on dips for more upside. Eye 95.50/96.00. As USD/JPY eye 102.50. 103 options. WL
Recommended Content
Editors’ Picks
EUR/USD retreats to 1.0750, eyes on Fedspeak
EUR/USD stays under modest bearish pressure and trades at around 1.0750 on Wednesday. Hawkish comments from Fed officials help the US Dollar stay resilient and don't allow the pair to stage a rebound.
GBP/USD struggles to hold above 1.2500 ahead of Thursday's BoE event
GBP/USD stays on the back foot and trades in negative territory below 1.2500 after losing nearly 0.5% on Tuesday. The renewed US Dollar strength on hawkish Fed comments weighs on the pair as market focus shifts to the BoE's policy announcements on Thursday.
Gold fluctuates in narrow range above $2,300
Gold struggles to make a decisive move in either direction and moves sideways in a narrow channel above $2,300. The benchmark 10-year US Treasury bond yield clings to modest gains near 4.5% and limits XAU/USD's upside.
SEC vs. Ripple lawsuit sees redacted filing go public, XRP dips to $0.51
Ripple (XRP) dipped to $0.51 low on Wednesday, erasing its gains from earlier this week. The Securities and Exchange Commission (SEC) filing is now public, in its redacted version.
Softer growth, cooler inflation and rate cuts remain on the horizon
Economic growth in the US appears to be in solid shape. Although real GDP growth came in well below consensus expectations, the headline miss was mostly the result of larger-than-anticipated drags from trade and inventories.