19 hours ago
By Dhara Ranasinghe, Rae Wee and Atsuko Aoyama
LONDON/SINGAPORE/TOKYO, Sept 4 (Reuters) - Six weeks after hitting a four-decade low against the dollar, the tide appears to be turning for the battered yen as a host of factors finally smoke out traders who have spent years betting against the ****** anese currency.
While central bank rate hikes and record currency intervention have failed to provide lasting support for the yen, new tailwinds from capital repatriation, unwinding carry trades and U.S. political pressure are now giving short speculators cause to rethink their long-term game.
The yen is on track for a roughly 2% surge against the greenback this week — the most since a rare joint U.S. and ****** an intervention at the end of July to lift the yen.
"The market psychology around the yen appears to be changing," said Rong Ren Goh, a fixed income portfolio manager at Eastspring Investments. "Investors seem increasingly reluctant to aggressively short the JPY (yen), particularly with the prospect of a BOJ rate hike in September adding another layer of risk to the trade."
#currency #dhara #ranasinghe
LONDON/SINGAPORE/TOKYO, Sept 4 (Reuters) - Six weeks after hitting a four-decade low against the dollar, the tide appears to be turning for the battered yen as a host of factors finally smoke out traders who have spent years betting against the ****** anese currency.
While central bank rate hikes and record currency intervention have failed to provide lasting support for the yen, new tailwinds from capital repatriation, unwinding carry trades and U.S. political pressure are now giving short speculators cause to rethink their long-term game.
The yen is on track for a roughly 2% surge against the greenback this week — the most since a rare joint U.S. and ****** an intervention at the end of July to lift the yen.
"The market psychology around the yen appears to be changing," said Rong Ren Goh, a fixed income portfolio manager at Eastspring Investments. "Investors seem increasingly reluctant to aggressively short the JPY (yen), particularly with the prospect of a BOJ rate hike in September adding another layer of risk to the trade."
#currency #dhara #ranasinghe
5 days ago
By Dhara Ranasinghe and Harry Robertson
LONDON, Sept 1 (Reuters) - Government borrowing costs from the United States to Germany and ***** an are at or near multi-decade peaks on heightened worries about inflation and rising interest rates, along with nagging anxiety about their debt loads.
Elevated bond yields could squeeze households and companies as well as exacerbating government finances.
Here's a look at what's behind the move in some major economies.
WHAT'S GOING ON?
#london #sept
LONDON, Sept 1 (Reuters) - Government borrowing costs from the United States to Germany and ***** an are at or near multi-decade peaks on heightened worries about inflation and rising interest rates, along with nagging anxiety about their debt loads.
Elevated bond yields could squeeze households and companies as well as exacerbating government finances.
Here's a look at what's behind the move in some major economies.
WHAT'S GOING ON?
#london #sept
16 days ago
By Dhara Ranasinghe and Wayne Cole
LONDON/SYDNEY, Aug 21 (Reuters) - Global stocks were headed for a mostly lower week on Friday, as strain in global bond markets showed little sign of abating and the diplomatic deadlock in the Gulf lifted oil prices to one-month highs.
U.S. government bond yields resumed their climb after Wednesday's surprise intervention by the Treasury brought barely a day of relief from selling sparked by concerns about elevated inflation and fiscal pressures.
The rise came even as U.S. Treasury Secretary Scott Bessent said he could further increase the government's repurchases of Treasuries, and floated the idea of fiscal consolidation.
Analysts were sceptical he could find enough spending cuts to seriously curb a budget deficit of more than 6% of gross domestic product, with interest charges alone this year running at $1.2 trillion, while the U.S. debt pile just crossed $40 trillion.
#treasury #trillion #dhara #wayne
LONDON/SYDNEY, Aug 21 (Reuters) - Global stocks were headed for a mostly lower week on Friday, as strain in global bond markets showed little sign of abating and the diplomatic deadlock in the Gulf lifted oil prices to one-month highs.
U.S. government bond yields resumed their climb after Wednesday's surprise intervention by the Treasury brought barely a day of relief from selling sparked by concerns about elevated inflation and fiscal pressures.
The rise came even as U.S. Treasury Secretary Scott Bessent said he could further increase the government's repurchases of Treasuries, and floated the idea of fiscal consolidation.
Analysts were sceptical he could find enough spending cuts to seriously curb a budget deficit of more than 6% of gross domestic product, with interest charges alone this year running at $1.2 trillion, while the U.S. debt pile just crossed $40 trillion.
#treasury #trillion #dhara #wayne
17 days ago
By Yoruk Bahceli, Ben Welsh, Dhara Ranasinghe and Rocky Swift
LONDON/NEW YORK/TOKYO, August 20 (Reuters) - U.S. debt has topped $40 trillion for the first time, underscoring the pressures on the world's major economies to fund ever-increasing spending demands -- from ageing populations to climate change and defence.
This year, the Iran war has rekindled inflation risks, while damage wrought by Europe's increasingly volatile weather is a further strain on public finances.
No wonder perhaps that U.S. 30-year Treasury yields have risen to their highest since 2007, prompting government action to contain rising borrowing costs. ******* anese borrowing costs are also near their highest in three decades and even Germany -- whose debt load is considerably lighter -- has seen its yields jump to the highest levels since 2011.
A high debt burden that brings higher borrowing costs risks hurting living standards by constraining spending and capping growth. Sovereign debt sets the benchmark for borrowing costs for companies and other loans, including household mortgages.
#spending #since
LONDON/NEW YORK/TOKYO, August 20 (Reuters) - U.S. debt has topped $40 trillion for the first time, underscoring the pressures on the world's major economies to fund ever-increasing spending demands -- from ageing populations to climate change and defence.
This year, the Iran war has rekindled inflation risks, while damage wrought by Europe's increasingly volatile weather is a further strain on public finances.
No wonder perhaps that U.S. 30-year Treasury yields have risen to their highest since 2007, prompting government action to contain rising borrowing costs. ******* anese borrowing costs are also near their highest in three decades and even Germany -- whose debt load is considerably lighter -- has seen its yields jump to the highest levels since 2011.
A high debt burden that brings higher borrowing costs risks hurting living standards by constraining spending and capping growth. Sovereign debt sets the benchmark for borrowing costs for companies and other loans, including household mortgages.
#spending #since
1 month ago
By Alun John, Dhara Ranasinghe and Sophie Kiderlin
LONDON, July 24 (Reuters) - Renewed hostilities in the Gulf have revived stagflation talk, dimming hopes the interim deal between the U.S. and Iran had come in time for the world economy to avoid elevated inflation alongside stagnant economic growth.
Instead, oil prices are back at $100, European gas prices are set for their biggest monthly jump since March and government borrowing costs are at multi-year highs on inflation angst as tensions escalate once more.
Trade frictions are adding to the uncertainty facing consumers, businesses and investors. The U.S. on Friday imposed new tariffs of 10% and 12.5% on goods from 60 trading partners, including the European Union and China, likely raising prices further.
"Stagflation risk has been very much there for each economy since March, in different ways," said Alessia Berardi, head of global macroeconomics, Amundi Investment Institute.
#john
LONDON, July 24 (Reuters) - Renewed hostilities in the Gulf have revived stagflation talk, dimming hopes the interim deal between the U.S. and Iran had come in time for the world economy to avoid elevated inflation alongside stagnant economic growth.
Instead, oil prices are back at $100, European gas prices are set for their biggest monthly jump since March and government borrowing costs are at multi-year highs on inflation angst as tensions escalate once more.
Trade frictions are adding to the uncertainty facing consumers, businesses and investors. The U.S. on Friday imposed new tariffs of 10% and 12.5% on goods from 60 trading partners, including the European Union and China, likely raising prices further.
"Stagflation risk has been very much there for each economy since March, in different ways," said Alessia Berardi, head of global macroeconomics, Amundi Investment Institute.
#john
