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Bank Of Japan Joins The Pack

Published 20/12/2022, 16:44
Bank Of Japan Joins The Pack
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Dogecoin (CRYPTO: DOGE) is now worth more than Coinbase (NASDAQ: NASDAQ:COIN)(largest U.S crypto exchange) and Silvergate (NYSE: SI) (largest U.S crypto bank) combined.

Probably nothing.

Prices as of 4 pm EST, 12/19/22; % YTD

MARKET UPDATE Yesterday tax loss selling continued into year-end

Month to date

  • S&P 500 down 6.4%

  • Nasdaq down 8.0%

  • TSX down 6.1%

Japan

  • Japan has kept interest rates below zero this year

  • Where they have been since 2016

  • Even as other major Central Banks have raised rates

If Japan does not move off their negative rate policy

  • Inflation is rising

  • Yen is falling

So, over-night, the Bank of Japan is shifting its Yield Curve Control (YCC) stance

  • Will raise its upper yield limit on 10 year JGBs from 0.25% to 0.5%

  • This will open the door for a rate hike in 2023

  • Yen is +3%

  • Nikkei is down 2.5%

  • Japan 10 year yield went up by 15bps to now yield 41 bps

Japan’s impact on U.S. Treasuries

  • 10 year up 6 bps

  • 2 year up 1 bps

  • Steepening the 2-10 yield curve by 5bps

  • This is the 3rd day in a row that the US 2-10 yield curve has steepened

Crude 76

  • Volume is light because it’s the last trade date for the January futures contract

  • Investors will look at the February contract

  • Near term demand picture is not clear

  • Global supply remains limited by OPEC+ discipline

Amazon (NASDAQ: NASDAQ:AMZN)

  • AWS awarded 5 year, $723 million U.S. Navy contract

Apple (NASDAQ: NASDAQ:AAPL)

  • Set to begin producing MacBooks in Vietnam by mid-2023

  • Pulled out of negotiations for the NFL Sunday ticket package

  • Amazon and Google (NASDAQ: NASDAQ:GOOGL) still bidding

Earnings

  • General Mills k(NYSE: GIS)

CRYPTO UPDATE

BlockFi looks to restart some withdrawals

  • Seeking court order green-lighting customer withdrawals

  • Also aims to clear up incorrectly reflected transactions

  • Court hearing Jan 9, 2023

Weekly digital asset fund flows

  • Outflows from investment products picked up last week, totaling $30 million

  • Bitcoin (CRYPTO: BTC) outflows of $17.5 million

  • Ethereum (CRYPTO: ETH) outflows of $9.1 million (5th consecutive week outflows)

  • Much higher trading volumes vs prev week

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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