A very important development for global markets ‼️
➡️ JGBs long-term bond yields are moving LOWER (see below the 30Y over the last month) while the Yen is firming against dollar (From nearly 158 on Sunday evening to roughly 155 this morning, it’s been a significant move in USDJPY). Takaichi landslide victory - which implies fiscal stimulus & tax cuts - hasn't trigger a bond or yen crash. Quite the contrary. Meanwhile, Japan equities continue to move upward. This is quite a compelling development overall for Japan macro & markets landscape.
GOOGL selling 100-year debt 😯
Source: Bloomberg
Alphabet has attracted >$100bn of orders for a bond sale that’s expected to be ~$15bn, BBG reports, citing people with direct knowledge of the matter.
The demand is among the strongest ever seen for a corporate bond offering, showing investor hunger to buy debt tied to the AI boom. Alphabet has also mandated banks for potential Swiss franc and Sterling debt offerings, including a rare 100-year Sterling note. Source: Bloomberg, HolgerZ
China urges banks to curb us treasuries exposure on market risk
Source: Bloomberg
It looks like negative interest rates are returning to Switzerland...
Government bonds with maturities of up to 4 years are now yielding negative returns. Source: HolgerZ, Bloomberg
Historically, Treasury Yields Rise After Fed Chair Nominations
With the time until the next Fed chair arrives at the Marriner Eccles building fast approaching, BofA Hartnett reminds us that 3 months following seven nominations for Fed Chair since 1970 (Burns, Miller, Volcker, Greenspan, Bernanke, Yellen, Powell), yields were up every time (2-year +65bps, 10-year +49bps)... Source: BofA, zerohedge
A shocking chart while Gold is flirting with $5,000/oz, it remains historically undervalued versus a 50/50 (S&P 500 / US Treasuries) portfolio
Source: Bloomberg, www.zerohedge.com
🇯🇵 For Japanese investors, domestic JGBs are now more attractive than hedged foreign bonds from a yield perspective.
Source: Augur Infinity @AugurInfinity on X
