Japan’s shorter-maturity bond yields rose after the Bank of Japan raised its inflation outlook, while pressure on the long-end continued to ease following a sharp selloff earlier this week. The two-year bond yield rose 3 basis points to 1.245%, and the five-year rate climbed 2 basis points to 1.68%. The 40-year bond yield fell 5.5 basis points to 3.94% after reaching its highest since its debut ea...
Japan’s shorter-maturity bond yields rose after the Bank of Japan raised its inflation outlook, while pressure on the long-end continued to ease following a sharp selloff earlier this week. The two-year bond yield rose 3 basis points to 1.245%, and the five-year rate climbed 2 basis points to 1.68%. The 40-year bond yield fell 5.5 basis points to 3.94% after reaching its highest since its debut earlier this week. The BOJ left its policy rate unchanged Friday at 0.75%, while board member Hajime Takata voted for a back-to-back rate hike. In its latest quarterly outlook, the bank revised up four out of six of its inflation projections and reiterated its intention to raise borrowing costs if its outlook materializes. Read: Bank of Japan Keeps Rate Steady While Raising Inflation Outlook “The outlook for inflation and wages was relatively strong, resulting in a somewhat hawkish tone,” said Mamoru Shimode , chief strategist at Resona Asset Management Co. “Considering the rise in two-year bond yields, this has led the market to subtly anticipate an April rate hike.” Overnight index swaps show a 75% chance of a rate hike by April. The yen edged lower against the dollar after the BOJ decision. Investors will be closely watching Governor Kazuo Ueda’s press conference at 3:30 p.m. for any comments about the recent bond market moves or hints on the central bank’s rate-hike path. Japanese Finance Minister Satsuki Katayama called on market participants to calm down after an intense day of bond selling on Tuesday. “I’ll be watching how Ueda describes the recent selloff in JGBs and the yen, and whether the moves are concerning enough to prompt a BOJ response,” said Carol Kong , a strategist at Commonwealth Bank of Australia. “Ueda will be careful not to sound overly dovish as it will accelerate yen losses.”
Hi, this is Andrea Dudik in Prague. Welcome to our weekly newsletter on what’s shaping economics and investments from the Baltic Sea to the Balkans. You can subscribe here . Putin’s Friends After months of US sanctions, halted fuel deliveries and uncertainty over the future of Serbia’s oil refinery, a deal is finally on the table — and it’s one, inevitably, with political as well as business impli...
Hi, this is Andrea Dudik in Prague. Welcome to our weekly newsletter on what’s shaping economics and investments from the Baltic Sea to the Balkans. You can subscribe here . Putin’s Friends After months of US sanctions, halted fuel deliveries and uncertainty over the future of Serbia’s oil refinery, a deal is finally on the table — and it’s one, inevitably, with political as well as business implications. Hungary’s Mol said it agreed with Russian giant Gazprom on the terms of an acquisition that should give the Budapest-based company control of the refinery. The plan is also to increase the Serbian government’s stake in it and allocate a portion to Abu Dhabi National Oil Co., as my colleagues Misha Savic and Marton Kasnyik reported this week. There’s still a lot to sort out, not least the actual price everyone will pay. The deal also needs American approval. But Serbia hasn’t been this close to ending the dominance of Russia in its energy industry since Gazprom bought the oil refiner, NIS, in 2008. Serbian President Aleksandar Vucic seems relieved. As one of the European leaders closest to Vladimir Putin, having a buyer from neighboring Hungary, another Russian ally, looks like an elegant solution. The squeeze on oil supplies and uncertain outlook also came as he faced more protests against his rule. The agreement has also brought a much-needed win for Hungarian leader Viktor Orban, whose party is trailing in the polls ahead of April’s election. The success of Mol and the 20% jump in its share price so far this year represent a bit of good news in an otherwise bleak economy. Criticized at home and in Brussels for his ties with Putin, Orban can claim he was right all along: Being close to Russia does still have its benefits. Around the Region Czech Republic: Michal Strnad, the 33-year-old owner of Czechoslovak Group, is seeking to raise €2.55 billion ($2.98 billion) from what’s set to be the largest initial public offering of a defense company on record. CSG shares a...
RH (NYSE: RH) , like the rest of the home improvement and home furnishings sector, has struggled in recent years. The stock formerly known as Restoration Hardware soared during the pandemic, but as mortgage rates and inflation spiked in the post-pandemic era, the business cooled off. Since then, President Trump's tariffs have put pressure on the business, and the company has moved nearly all of it...
RH (NYSE: RH) , like the rest of the home improvement and home furnishings sector, has struggled in recent years. The stock formerly known as Restoration Hardware soared during the pandemic, but as mortgage rates and inflation spiked in the post-pandemic era, the business cooled off. Since then, President Trump's tariffs have put pressure on the business, and the company has moved nearly all of its production out of China. As you can see from the chart below, the stock is still down 69% from its peak in 2021, and the rally in late 2024 faded after Trump's tariff regime came into a play. Continue reading