Capital Markets

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...

  • Impact of deserted market

    JGB yields more volatile as banks, insurers stay away

    TOKYO -- As banks and life insurers avoid purchasing Japanese government bonds, the thinning ranks of buyers are making the market prone to wild fluctuations. The yield on newly issued 10-year JGBs spiked from 0.225% to 0.265% at one point Tuesda...

  • S&P's outlook on Asia

    Malaysia likely to retain sovereign rating despite plummeting oil prices

    SINGAPORE -- Sovereign ratings of nations in the Asia-Pacific region are expected to stay largely stable for the next one to two years, credit rating agency Standard & Poor's says in a recent report. Most Asian countries, being oil importers, benefit...

  • JGBs soften as Tokyo stocks soar

    TOKYO (Dow Jones) -- Long-term Japanese government bonds and futures softened on Tuesday as Tokyo share prices soared. Traders said that a rise in stocks and a fall in bonds overseas overnight, as well as a gains in Tokyo share prices on hopes fo...

  • S&P downgrades Russia's sovereign credit rating to 'junk'

    MOSCOW (Reuters) -- Ratings agency S&P cut Russia's sovereign credit rating to junk status on Monday, bringing it below investment grade for the first time in a decade. Warning of difficult times ahead for Russia's economy, S&P said it had cut th...

  • Fallout from ECB easing

    Negative bond yields ripple through market

    LONDON -- The European Central Bank's decision to purchase government debt has reassured investors of the reliability of these assets, sustaining their popularity even as yields fall into negative territory. Investors would lose money if they hol...

  • Seeking stable rates

    China's central bank pumps cash into market

    SHANGHAI -- The People's Bank of China injected funds into the money market on Thursday as it sought to improve liquidity for banks and businesses ahead of the Chinese New Year holiday. The central bank carried out its first reverse-repurchase op...