JAPAN: BOJ Governor Ueda Speaks in Cape Town, Tokyo CPI Due Friday
Feb-27 15:50
- Just to be aware that BOJ Governor Ueda is speaking in Cape Town:
- "BANK OF JAPAN GOVERNOR UEDA : THERE IS STILL UNCERTAINTY ON US TARIFF POLICY, HOW OTHER COUNTRIES WILL RESPOND, SO NEED TO SCRUTINISE DEVELOPMENTS IN GAUGING IMPACT ON GLOBAL, JAPANESE ECONOMIES"
- "WILL MAKE DECISION ON MONETARY POLICY AFTER SCRUTINISING IMPACT OF US POLICIES ON GLOBAL ECONOMY, MARKETS, JAPAN'S ECONOMY AND PRICES" (Reuters)
- USDJPY continues to trade on the front foot Thursday, currently just shy of the 150.00 mark at typing, having bounced firmly from the overnight lows of 148.75.
- Recall that Tokyo CPI data is due overnight. The reading comes off the back of an acceleration in January national CPI, with February’s print expected to decelerate slightly to 3.2% Y/Y (vs 3.4% prior). Stronger data in Japan has been a key driver of the hawkish BOJ repricing, with Q4 GDP and December wages data surprising to the upside in recent weeks.
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US DATA: Regional Fed Mfg Surveys Point To Sizeable ISM Mfg Upside Risk
Jan-28 15:37
- The Richmond Fed manufacturing survey rounded out the five regional Fed reports for January, with the five on balance seeing a sequential improvement.
- The Richmond mfg index beat expectations as it increased to -4 in Jan (cons -10) from -10 in Dec for a further improvement away from the low of -21 in September. It’s now the least negative since May.
- New orders painted a broadly similar story, at -4 after -11 although that was its least negative since Oct 2023.
- Looking more broadly, three of the five regional Fed indices saw improvements in January, whilst Kansas held steady for roughly a fourth consecutive month and Empire gave back some of its prior gains.
- Philly clearly stood out though, surging from -10.9 to 44.3 for the highest since the 44.4 in Apr 2021 and before that 1984.
- That biased the unweighted average of the five series firmly higher, rising from -3.9 to +7.4 for its first positive reading since May 2022.
- Taken directly, it points to an ISM manufacturing reading comfortably in the 50s at would be a sizeable beat, currently expected at 48.9 in Jan after 49.2 (released next Monday). However, the localized nature of regional strength suggests caution is needed.
GILT AUCTION PREVIEW: On offer next week
Jan-28 15:33
The DMO has announced it will be looking forward to sell GBP4.25bln of the 4.375% Mar-30 Gilt (ISIN: GB00BSQNRD01) at its auction next Tuesday, February 4.
PIPELINE: Corporate Bond Issuance Update: $2B Arab Republic of Egypt 2Pt Launch
Jan-28 15:22
- Date $MM Issuer (Priced *, Launch #)
- 01/28 $2B Carnival Corp 8NC3
- 01/28 $2B #Arab Republic of Egypt $1.25B 5Y 8.625%a, $750M 8Y 9.45%
- 01/28 $750M #Ziraat Bank 5Y 7.375%
- 01/28 $Benchmark American Express 6NC5 +100a, 6NC5 SOFR, 11NC10 +120a
- 01/28 $Benchmark Toronto-Dominion Bank 3Y +85a, 3Y SOFR, 7Y +105a
- 01/28 $Benchmark Capital One 11NC10 +195a
- 01/28 $Benchmark JPMorgan PerpNC5 7%a
- 01/28 $Benchmark Aircastle 5Y +137.5a
- 01/28 $Benchmark ForteBank 5Y 8%a
