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SYDNEY (Reuters) – Bond prices rose on Tuesday as the dollar eliminated expected losses on the yen in a cautious response to what were seen as minor changes in the Bank's ultra-easy monetary policy. Japan.
An electronic scoreboard showing the average Nikkei shares is considered as market prices are reflected in a showcase on the Tokyo Stock Exchange (TSE) in Tokyo, Japan on February 6, 2018. REUTERS / Toru Hanai – RC1535515100 [19659003] At its two-day meeting, the BoJ is committed to keeping interest rates "very low" for the time being. It has also taken steps to ease its massive stimulus package, reflecting expectations that it would take time for inflation to reach its 2% target.
The announcement reassured bond investors, as the policy changes did not seem to show any inclination on the part of the Bank of Japan to radically change its accommodative stance.
In response, 10-year Japanese government bond yields dropped 3 basis points from 0.11% to a peak of 1-1 / 2 year, while 40-year bonds fell by almost 9 basis points. The JGB movement has also lowered yields on 10-year Treasury bills.
However, the foreign exchange reaction was moderate as some market participants expected more clarity. The dollar erased losses against the yen and remained stable at 111.06. The dollar index, which measures the greenback versus a basket of major currencies, was barely changed to 94,314.
"The market is definitely cautious at this point, and I hope we will have more clarity when Kuroda will speak later today," said Rodrigo Catril, senior forex analyst at National Australia Bank. .
BOJ Governor Haruhiko Kuroda will hold a press conference at 15:30. (0630 GMT) to explain the political decision.
"At this point, it is unclear what the BoJ means by allowing long-term rates to go up and down, and it's as vague as possible," Catril added.
"The proof will be in the way they react in open market operations.It will be interesting to see how they allow 10-year JGB rates to increase."
SHARES [19659012ElsewhereAsianstockmarketserasedsomeoftheirinitiallossesasaccommodativemonetarypolicyisseenaspositiveforriskyassetsalthoughaglobaldefeatintechnologystockshasheldbackgains19659004] Nikkei of Japan was last drop of 0.1 percent, after falling more than 0.5 percent earlier in the day.Kospi index of South Korea fell by 0.1% despite strong results from Samsung Electronics in the second quarter, which posted a 5.7% rise in earnings.
The largest MSCI Asia-Pacific index outside Japan was down 0, 3% while Australian equities remained unchanged. 9659004] Wall Street, the Dow Jones and the S & P 500 lost 0.6% and the Nasdaq 1.4% largely driven by losses in technology stocks.
The technology index plummeted 1.8%, with disappointing results from Facebook, Twitter and Netflix having raised concerns about the future growth of a sector that drove US stocks to record higher.
Investors will then turn to other decisions of the central bank this week. The US Federal Reserve concludes its policy meeting on Wednesday and the Bank of England raises its interest rates on Thursday. Macroeconomic end-of-month data is also expected Wednesday in China.
The pound sterling stood at $ 1.3132, moving away from a trough of more than 10 months of $ 1.2955 touched earlier in July.
In commodities, US crude fell 35 cents to 69.78 dollars a barrel after a strong overnight rally while Brent fell 36 cents to 74.61 dollars.
Spot gold was a little firmer at $ 1,222 an ounce.
Edited by Sam Holmes and Shri Navaratnam
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