Author: Eamonn Sheridan

Kenro Kawano, chief bond strategist at Morgan Stanley MUFG Securities Co. in Tokyo:

  • Says the BOJ will taper stimulus in 2016
  • 10-year sovereign bond yields will more than double over the next year

He says signs that wage growth will drive consumer confidence and start to lift the economy from recession.

"We now have some inflation, not deflation. With wage growth, combined with improving economic sentiment, we are forecasting a gradual recovery in the Japanese economy. Once people think about the possibility of the BOJ tapering, the market should react."
  • Says Japan's 10-year yield will rise to 1.25 percent by the middle of next year, Kawano said, from 0.315 percent

Bloomberg notes that Morgan Stanley's view is in the minority with just 4 of 32 analysts predicting the BOJ can start to taper next year

  • Most are focusing on when stimulus will be expanded

-

I can't say I agree with him on the tapering call just yet.

View More

Join the Conversation


Author: Eamonn Sheridan

Some USD strength across the board

There's a litte USD strength pushed currencies a fraction lower in Asia Note ... the moves are quite small, but noticeable.EUR, yen, GBP, CHF, AUD and NZD all ... (View Article for More)

View Full Article


Author: Eamonn Sheridan

Comments from Fed Dudley overnight

Comments from New York Fed President William Dudley overnight.I haven't seen them here, so just sticking the pertinent ones up now& ... (View Article for More)

View Full Article


Author: Eamonn Sheridan

2 bank previews of the RBA today

Preview of the Reserve Bank of Australia April meeting Minutes today from Barclays and UBS:Barclays: We look for signaling this wee ... (View Article for More)

View Full Article


Author: Eamonn Sheridan

Preview of the RBA April Minutes due today

Due at 0130 on 21 April 2015 are the Minutes of the April Reserve Bank of Australia meeting, here's a preview and what to look for. ... (View Article for More)

View Full Article

;
LON GMT+1
BJ HK+8
NY EST-4
TYO +9

Forex Orders ... More

Central Banks ... More

Technical Analysis ... More

;