Headlines:
- USD/JPY speed runs its way to hit 125.00
- BOJ reaching desperation point to try and maintain yield curve control
- BOJ makes second offer today to buy unlimited amount of 10-year JGBs at 0.25%
- Russia says there have been no substantial breakthrough in talks with Ukraine
- BOE's Bailey: We are starting to see evidence of a growth slowdown
- SNB total sight deposits w.e. 25 March CHF 731.5 bn vs CHF 728.9 bn prior
- UAE energy minister: No one can substitute Russian barrels
- UAE energy minister: People want more oil production but few want to finance the industry
Markets:
- USD leads, JPY lags on the day
- European equities higher; S&P 500 futures up 0.2%
- US 10-year yields down 2 bps to 2.475%
- Gold down 1.5% to $1,928
- WTI down 5.7% to $107.40
- Bitcoin up 6.0% to $47,230
The Japanese yen continues to implode as the BOJ stepped in multiple times to try and intervene in order to maintain yield curve control. The desperation sent the yen spiraling with USD/JPY having already jumped 100 pips to 123.00 in Asia trading, before racing higher to hit a high of 125.10 in European morning trade.
Some profit-taking and a natural psychological resistance is seen there and that is helping to calm the bulls' momentum for now, with price slipping back to around 124.00.
Meanwhile, the aussie continues to prove to be resilient as well with AUD/USD keeping above 0.7500 despite the dollar holding mostly firmer across the board. AUD/JPY is on course for a ninth straight week of gains with the high earlier clipping just above 94.00.
Elsewhere, EUR/USD is down 0.2% to 1.0960 while GBP/USD is struggling as BOE governor Bailey continues to offer a rather indecisive view on rate hikes, with the pair falling 0.6% to 1.3110.
The bond market rout gathered pace early on in the session with 2-year Treasury yields climbing up by over 10 bps to 2.40% and 10-year yields hitting above 2.50%. But that has since cooled off, providing a bit of a breather for the yen as well.
With little on the agenda, it is still all about the yen and bonds as the new week gets underway.
