Japan debt worries, Asian crisis ahead?

Important News for the day

• Wed. 19th, 01:30 CET AU Wage price index.
• Wed. 19th, 08:00 CET UK Consumer prices index.
• Wed. 19th, 20:00 CET US FOMC meeting minutes.

JP bonds

Yields of Japanese ten- year bonds have climbed to the highest since the global financial crisis marking a 17-year high. They currently trade above the 1.75% level. The trust in the government seems to erode further while also the JPY is losing steam against most other currencies. Prime Minister Sanae takaichi is planning to add a budget of USD 161 billion to boost the economy. Furthermore, also households should be protected from rising prices. Market participants fear that the stance for the economy is extremely dovish and that the government will fail to secure funding especially with longer term bonds. Japan’s debt sits at at about 220% compared to their gross domestic product.

Market talk

The correction in global stock markets seems to continue. Asian indices continued to move lower after US markets had closed below important support levels yesterday. The US- Dollar is losing some momentum against other currencies and might indicate that positive market sentiment could return. In particular the AUD is rising slightly today, which might support the positive risk sentiment. Worth noting that the crypto market does not see potential positive momentum. Instead, most tokens keep falling and might indicate a further slide in prices

Tendencies in the markets

Equities sideways, USD mixed, crypto weaker, oil sideways, Silver positive, Gold sideways.