Capital Markets

A pedestrian is reflected in an electronic board showing the graph of the recent fluctuations of Japan's Nikkei average outside a brokerage in Tokyo. © Reuters

Goodbye, carry trades

Yen's value no longer inversely correlates to Nikkei movements

TOKYO -- The link between the yen and Japanese stocks has decisively weakened, as demonstrated by the currency's dull reaction to the Nikkei Stock Average's 371-point drop in intraday trading on Friday. The long-held inverse correlation between t...

  • Seeking higher returns

    Japan institutional investors turning to foreign securities

    TOKYO -- Japanese institutional investors have been buying more foreign securities, disappointed by meager returns on domestic assets amid ultralow long-term interest rates. Data from the Bank of Japan show pension funds, investment trusts and in...

  • Government bonds

    Investors shift money from Europe to Japan

    TOKYO -- Yields on Japanese government bonds have remained low of late, and not just because the Bank of Japan is making massive JGB purchases. Investors are beginning to shift their money from euro bonds to JGBs, as long-term interest rates fall int...

  • JGBs gain sharply after dovish Fed meeting

    TOKYO (Dow Jones) --The Japanese government bond market broadly gained Thursday following dovish results of the U.S. Federal Reserve meeting, sending the benchmark 10-year bond yield tumbling to its lowest level more than a month and a half. As ...

  • Indonesia deficit

    Government issuing 100 billion yen of samurai bonds

    JAKARTA -- The Indonesian government plans to raise funds by issuing samurai bonds for up to 100 billion yen ($816 million) this month to help with its 2015 budget deficit of 222.51 trillion rupiah ($17.1 billion), about 1.9% of gross domestic produc...

  • Clouding conditions

    Market players call for vaguer BOJ inflation deadline

    TOKYO -- A majority of bond market players think that the Bank of Japan should make the deadline for its inflation target less clear and later, according to a QUICK survey released Monday. The Feb. 24-26 poll covered 147 bond managers at brokerag...

  • Second cut in three months

    China trims interest rates again

    BANGKOK -- China's central bank on Saturday evening announced another round of interest rate cuts. The People's Bank of China set the one-year lending rate at 5.35% and the deposit rate at 2.5%. Both cuts of 0.25 basis points take effect Sunday. ...

  • Market settling down?

    Long-term rates touch 2-week low in Japan

    TOKYO -- The yield on newly issued 10-year Japanese government bonds hit the lowest level in about two weeks on Tuesday after a tender for 40-year bonds went smoothly. As a result, more market players say that the uptrend in long-term interest ra...

  • Japan's debt market

    Foreigner retreat in January pushed up long rates

    TOKYO -- A big loss of appetite for Japanese government bonds among foreign investors was behind the surge in long-term interest rates that began in late January. Long-term rates started rising after the BOJ defied market hopes for additional mo...

  • Japan's corporate debt market

    Foreign currency bond issues hit 23-year high last year

    TOKYO -- Japanese companies' overseas issues of foreign currency-denominated bonds reached a 23-year high in 2014, a trend that will likely continue this year amid increased cross-border mergers and acquisitions, low interest rates worldwide and the ...

  • Fundraising for cheap

    Kintetsu to offer 7-year bonds amid low rates

    TOKYO -- Railway operator Kintetsu will issue 10 billion yen ($83.7 million) in seven-year straight bonds by the end of the month to take advantage of the low long-term interest rates in Japan. The company will use part of the funds for repaying ...

  • Nicholas Spiro

    Emerging Asia's local bond markets warrant caution

    Investor sentiment towards the local government debt markets of developing economies has been fairly bleak since the U.S. Federal Reserve stunned markets in May 2013 by announcing its intention to wind down its asset purchase program. Last year w...

  • Record JGB holdings

    Foreign investors get into Japanese debt as yields decline elsewhere

    TOKYO -- Overseas investors' holdings of Japanese government bonds set a new record high for the first time in seven years, topping 46 trillion yen ($383 billion) at the end of 2014. Foreign investors as a whole have become the second-largest hol...

  • Skepticism over easy money

    Long rates spike after JGB auction disappoints

    TOKYO -- Volatility in the market for Japanese government bonds is rattling the currency and equities markets. The yield on newly issued 10-year JGBs touched a two-month high Friday, driving the yen higher against the dollar on the one hand and p...

  • China monetary policy

    China's latest easing move a response to money outflows

    BANGKOK -- The People's Bank of China's announcement Feb. 4 that it will further relax monetary policy, after slashing its benchmark interest rates last November, was widely anticipated by economists. The world's second-largest economy has been showi...

  • Lessons from 1997

    ASEAN integration to bring a unified capital market

    TOKYO -- The ASEAN Economic Community, or AEC, will kick off by the end of this year, further integrating the 10 members of the Association of Southeast Asian Nations. While the member states are, of course, removing tariffs on goods traded among the...

  • JGB market

    Japan's interest rate spike eases on supply-demand improvement

    TOKYO -- Robust demand for Japanese government bonds and a decrease in JGBs absorbed through the central bank's buying operations has helped to tame a sharp rise in interest rates in Japan. At an auction on Thursday, the Finance Ministry sold 30-...

  • Warning to Athens

    ECB cancels soft treatment of Greek debt

    FRANKFURT/BRUSSELS (Reuters) -- The European Central Bank abruptly cancelled its acceptance of Greek bonds in return for funding on Wednesday, shifting the burden onto Athens' central bank to finance its lenders and isolating Greece unless it strikes...

  • Japanese interest rates

    Ten-year yield jerks upward after weak JGB auction

    TOKYO -- Japanese long-term interest rates have turned unstable as market predictions of a continuing decline prove unfounded. The benchmark yield on newly issued 10-year Japanese government bonds ticked up 7 basis points to a roughly 20-month hi...

  • Pursuing higher returns

    Japan banks, insurers shunning domestic government bonds

    TOKYO -- The sharp decline in long-term interest rates has prompted domestic banks and life insurers to rethink their practice of buying large amounts of Japanese government bonds and opt instead for riskier instruments such as stocks and foreign bon...