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May 17, 2013

Dollar near 10-mth high as Fed dove foreshadows QE wind-down

TOKYO, May 17 (Reuters) – The U.S. dollar held firm near a
10-month high against a basket of major currencies on Friday
after a regional Fed chief, long seen as a policy dove, said the
Fed could begin easing up on stimulus this summer and end it
late this year.

Remarks by John Williams, president of the Federal Reserve
Bank of San Francisco, moved markets as investors see his
thinking close to that of the Fed’s top officials such as
Chairman Ben Bernanke and Vice Chair Janet Yellen.

May 15, 2013

BOJ seeks to stem JGB rout with massive fund injection

TOKYO, May 15 (Reuters) – Struggling to stem a rout in
government bond prices, the Bank of Japan said on Wednesday it
will pump a massive amount of cash into the Tokyo money market.

The offer to inject 2.8 trillion yen ($27 billion) in market
operations on Friday is more than three times the size usually
offered in a single day.

May 15, 2013

JGBs extend losses to fourth day, 10-year yield hits 1-year high

TOKYO, May 15 (Reuters) – Japanese government bond prices
fell for the fourth straight session on Wednesday, with the
10-year bond yield hitting a one-year high, as investors
reassess their long-held assumptions of low growth and low
inflation in Japan.

A huge spike in market volatility since the Bank of Japan
introduced massive easing last month has heightened worries
among banks’ risk managers, forcing them to advise traders to
cut their exposure to the market.

May 14, 2013

Dollar takes breather as focus turns to more U.S. data, Fed Policy

TOKYO, May 14 (Reuters) – The dollar slipped from a
five-week high against a basket of major currencies on Tuesday
as market players locked in profits ahead of a series of U.S.
economic data that could determine whether the Federal Reserve
is ready to roll back its stimulus program.

While factors cited as a possible trigger for profit-taking
were wide-ranging, from a sharp sell-off in Japanese government
bonds and real estate investment trusts (REITs) to a media
report on hedge funds’ buying the euro, traders agree that they
were just an excuse.

May 14, 2013

Dollar takes breather from rally as focus turns to more U.S. data

TOKYO, May 14 (Reuters) – The dollar slipped from a
five-week high against a basket of major currencies on Tuesday
as market players locked in profits ahead of a series of U.S.
economic data that could sway the U.S. Federal Reserve’s policy.

While factors cited as a possible trigger for profit-taking
were wide-ranging, from a sharp sell-off in Japanese real estate
investment trusts (REITs) and a media report on hedge funds’
buying in the euro, traders agree that they were just an excuse.

May 14, 2013

Dollar holds firm after robust U.S. retail sales

TOKYO, May 14 (Reuters) – The dollar held firm near
five-week high against a basket of major currencies on Tuesday
after U.S. retail sales data eased fears of a slowdown in the
world’s largest economy.

The yen held near 4 1/2-year low against the U.S. currency
as Group of Seven finance officials meeting over the weekend
held back from criticising Japan’s monetary policy.

May 13, 2013

JGBs dive for two straight days, futures hit 1-year low

TOKYO, May 13 (Reuters) – Japanese government bond prices
dived for two straight sessions on Monday as soaring Japanese
share prices prompted investors to question their long-standing
confidence in low-risk but low-yielding Japanese government
bonds.

The benchmark futures price posted its biggest two-day
decline in almost two and a half years to hit a one-year low,
with the Tokyo Stock Exchange briefly suspending trading as a
circuit breaker was triggered.

May 10, 2013

Dollar storms to 101 yen, highest in four years

TOKYO (Reuters) – The yen weakened past 100 per dollar, giving Japanese Prime Minister Shinzo Abe a symbolic victory for his easy money policies, with markets bracing for further declines in the currency that could raise tensions with trading partners.

The yen broke through resistance to fall as low as 101.43 per dollar, down nearly three percent from Thursday’s high around 98.65, and the weakest level in over four-and-a-half years.

May 10, 2013

Yen breaks through 100, Abenomics hits another milestone

TOKYO, May 10 (Reuters) – Japanese Prime Minister Shinzo Abe
scored another small victory as the yen broke below major
support of 100 to the dollar, with analysts predicting further
declines over the course of the year that would underpin the
export-dependent economy.

The yen fell to as low as 101.20 per dollar, down
more than two percent from Thursday’s high around 98.65, and the
lowest level in over four and a half years.

May 8, 2013

JGBs narrowly mixed after solid auction offset rise in stocks

TOKYO, May 8 (Reuters) – Japanese government bonds were
narrowly mixed on Wednesday, with a good auction result
helping them pare early losses sparked by firmer share prices.

While the market has regained stability in recent weeks,
with the 10-year cash bond yield sitting comfortably within its
recent trading band, some market players worry further advances
in stock prices could prompt investors to rotate out of JGBs and
into equities.