Hello all and welcome, eyes on Japan again today.
Yesterday we had JGB yields climbing again:
Today there is a scheduled QE operation from the Bank of Japan, as it happens part of it in the 10 year. More to come on this just below
2200 GMT New Zealand consumer confidence for July, the ANZ survey
- prior -0.8% m/m
2330 GMT Japan inflation, the Tokyo area CPI for July
Tokyo headline CPI y/y
- expected 0.7%, prior was 0.6%
Tokyo CPI excluding Fresh Food y/y
- expected 0.7%, prior was 0.7%
Tokyo CPI excluding Food, Energy y/y
- expected 0.4%, prior was 0.4%
- You'll note once the impact of energy (oil prices in particular for Japan) the core-core CPI is the weaker of the three. Its this core-core rate that is closest to the US (for example) measure of core inflation
0110 GMT Bank of Japan outright purchasing of Japanese Government Bonds
- 1-3, 3-5, 5-10 years until maturity
- Earlier this week the BOJ bid to buy an unlimited amount of 10 yr JGBs, they did this to combat rising yields above their target (which is 'around zero'). Yield hit a one year high yesterday, so be on the alert for a similar operation today.
0130 GMT Australian 'wholesale inflation ' data for Q2
PPI q/q and y/y
- priors 0.5% and 1.7% respectively
0130 GMT China (following the daily CNY mid rate setting around 0116GMT), Industrial Profits for June
- prior 21.1%
The picture in China is a complex one; we've got a softening in demand, high leverage, government stimulus, government efforts to lower the exchange rate (to an extent a falling yuan contributes to export sales) and, of course a trade war. The world's favourite 'China proxy', the Australian dollar, is heavy which to an extent gives you an idea of how investors are viewing China developments (of course that's a complex picture too, muddied by Australia factors (falling 'high yield' advantage as the US raises rates, inflation missing target, weak wage growth, high household debt to name a few).
