EUR/USD
1.15773
-0.098%
Gold
4327.37
0.425%
Oil
79.276
-0.706%
USD/JPY
160.271
-0.046%
GBP/USD
1.33973
-0.112%
GBP/JPY
214.725
-0.150%
Real-time News
The yield on Japans 5-year government bonds rose 5 basis points to 1.915%.On June 16th, Takashi Fujiwara, Chief Fund Manager at Resona Asset Management, stated that the Bank of Japans (BOJ) statement explicitly indicated that short- and medium-term real interest rates are negative. This could mean the BOJ does not want ultra-long-term bond yields to rise further. Simultaneously, this could also be a signal from the BOJ that if short- and medium-term interest rates remain low, businesses can easily raise funds and potentially expand into higher-risk sectors. The BOJ discussed the economy and prices side-by-side in its statement. This could indicate the BOJs willingness to raise interest rates further. Even if the opening of the Strait of Hormuz slows price increases, the BOJ can still use economic growth as justification for raising interest rates.On June 16th, Tohru Sasaki, chief strategist at Fukuoka Financial Group and a former Bank of Japan official, stated that a minor surprise was the scale of Japanese government bond purchases. The market had expected the purchase scale to remain largely unchanged after April next year, but it was actually slightly reduced and will remain unchanged thereafter. Therefore, this differs slightly from market consensus. However, the focus is on how Bank of Japan Deputy Governor Shinichi Uchida will articulate future monetary policy. Uchida needs to proceed cautiously at this press conference. It will be very difficult for him to express any major shifts in future policy. Therefore, I believe the market may interpret Uchidas press conference as a dovish signal. The Ministry of Finance may intervene on the day of the Bank of Japans interest rate hike due to the continued weakness of the yen. Looking ahead, I believe the health of Bank of Japan Governor Kazuo Ueda is crucial. If he needs to be replaced for health reasons, his successor will likely be a dovish governor.June 16 – The Reserve Bank of Australia (RBA) kept its key interest rate unchanged for the first time this year, given that the previous three rate hikes had begun to put pressure on the Australian economy. On Tuesday, all nine members of the committee unanimously voted to keep the cash rate at 4.35%, in line with expectations. RBA Governor Bullock will hold a press conference later, and investors will be watching to see if policymakers will enter a prolonged pause or continue their tightening stance. In its statement, the RBA said, “The cash rate target has been raised three times since the beginning of the year, and current financial conditions are tighter than before, with signs of an economic slowdown emerging as expected.” This pause in rate hikes marks a softening of the RBA’s aggressive tightening policy, which had previously made it stand out among major central banks. While policymakers continue to warn that inflation remains too high and that high energy costs related to the war with Iran pose upside risks, recent weaker data has provided the central bank with room to hold its position and assess the situation.June 16 – On the morning of June 16, President Xi Jinping held talks with Myanmar President Min Aung Hlaing, who was on a state visit to China, at the Great Hall of the People in Beijing. Xi Jinping pointed out that President Min Aung Hlaing has long been a friend of China. Last year, we met twice and exchanged in-depth views on strategic and directional issues concerning China-Myanmar relations. I am willing to continue to strengthen guidance with you, carry forward the fraternal friendship, deepen comprehensive strategic cooperation, promote the building of a China-Myanmar community with a shared future to achieve more results, bring more benefits to the people of both countries, and make greater contributions to regional peace and development.
