Recent Volatility in JGB Market ‘Bound to Unnerve Investors,' HSBC Global Research Says
0303 GMT — Recent volatility in JGB market is 'bound to unnerve investors,' three members of HSBC Global Research say in a research report. 'Insurers, the traditional and stable domestic investor base of super-long JGBs, have been sitting on the sidelines,' they say. There is also worry over 'how the volatility in the long-end could reverberate through to the shorter part of the curve, which will then have an impact on the real economy,' they add.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNBC
23 minutes ago
- CNBC
Gold retreats from near four-week peak as dollar ticks up
Gold prices fell on Tuesday, retreating from near a four-week high, as a modest rise in the dollar weighed on the metal, although uncertainty over the U.S.-China trade agreement kept investors cautious and limited the bullion's decline. Spot gold fell 0.3% to $3,369.98 an ounce, as of 0249 GMT, after hitting its highest level since May 8 earlier in the session. U.S. gold futures were steady at $3,390. The metal gained about 2.7% in the previous session, marking its strongest daily performance in more than three weeks. "Dollar recovered slightly and gold came down so it has been inversely correlated at this point of time," said Brian Lan, managing director at GoldSilver Central, Singapore. However, gold is still closely tracking developments around global trade, and while investors have slightly reduced their positions in gold it is not to the extent seen in previous instances when tensions appeared to ease, said Lan. The U.S. dollar index recovered slightly from a six-week low. U.S. President Donald Trump and Chinese President Xi Jinping will likely speak this week, White House said on Monday, days after Trump accused China of violating an agreement to roll back tariffs and trade restrictions. U.S. tariffs on imported steel and aluminum are scheduled to double to 50% starting on Wednesday, coinciding with the Trump administration's deadline for countries to submit their best offers in trade negotiations. The European Commission said on Monday it would make a strong case this week for the U.S. to reduce or eliminate tariffs despite Trump's decision to double import duties on steel and aluminum. Meanwhile, Russia told Ukraine at peace talks on Monday that it would only agree to end the war if Kyiv gives up big new chunks of territory and accepts limits on the size of its army, according to a memorandum reported by Russian media. Elsewhere, spot silver fell 2.1% to $34.07 an ounce, platinum was steady at $1,062.46 and palladium was up 0.1% at $990.26.
CNBC
23 minutes ago
- CNBC
Oil rises on Iran, Russia and Canada supply concerns
Oil prices rose in early Asia trade on Tuesday on concerns about supply, with Iran set to reject a U.S. nuclear deal proposal that would be key to easing sanctions on the major oil producer, and with production in Canada hit by wildfires. Brent crude futures gained 55 cents, or 0.85%, to $65.18 a barrel by 0000 GMT. U.S. West Texas Intermediate crude was up 59 cents, or 0.94%, to $63.11 a barrel, after rising around 1% earlier in the session. Both contracts gained nearly 3% in the previous session after OPEC+ agreed to keep output increases in July at 411,000 barrels per day, which was less than some in the market had feared and the same hike as in the previous two months. Geopolitical tensions supported prices on Tuesday. Iran was poised to reject a U.S. proposal to end a decades-old nuclear dispute, an Iranian diplomat said on Monday, saying it fails to address Tehran's interests or soften Washington's stance on uranium enrichment. If nuclear talks between the U.S. and Iran fail, it could mean continued sanctions on Iran, which would limit Iranian supply and be supportive of oil prices. The ongoing conflict between Russia and Ukraine continued to stoke supply concerns and geopolitical risk premiums. Adding to supply worries, a wildfire in the province of Alberta in Canada has prompted a temporary shutdown of some oil and gas production, which could reduce supply. According to Reuters calculations, wildfires in Canada have affected more than 344,000 bpd of oil sands production, or about 7% of the country's overall crude oil output. The big jump in oil prices on Monday mostly reflected relief that the Organization of the Petroleum Exporting Countries and allies, including Russia, did not go ahead with a larger production hike than in the previous two months. "With the worst fears not panning out, investors unwound their bearish positions they had built prior to the weekend's meeting," Daniel Hynes, senior commodity strategist at ANZ, said in a note.
Yahoo
28 minutes ago
- Yahoo
South Korean delivery workers allowed rare pause in services to vote in snap election
By Hyunsu Yim SEOUL (Reuters) -South Korean e-commerce and courier companies agreed to a rare halt of their delivery services on Tuesday to allow busy delivery workers time to cast their ballot in the country's snap presidential election after pressure from unions and activists. Asia's fourth-largest economy has a highly tuned e-commerce sector and South Koreans typically rely on couriers to deliver everything from fresh food to clothing, often in a matter of hours, with the service normally available throughout the year. South Korea's biggest e-commerce platform Coupang, agreed to halt express deliveries for the first time since it launched in 2014, joining other local delivery services such as CJ Logistics and Hanjin Logistics. "Rocket delivery will be paused during the day on June 3," New York-listed Coupang said in a notice on its platform, pausing deliveries between 7 a.m. and 8 p.m. Most of the tens of thousands of delivery workers in South Korea are considered gig workers or self-employed and do not enjoy the same legal protections as permanent employees. The job is also notorious for long working hours and a heavy workload, with couriers complaining they have seen few of the benefits from an improvement in labour rights in other sectors. The agreement to temporarily halt services during the polls, was positively received by some workers. "I welcome the decision. But on the other hand, it is a little regrettable that night drivers cannot rest," said Cho Shin-hwan, a Coupang courier, who had to work on past elections. Nearly 8 in 10 eligible voters in South Korea voted in the last presidential election in 2022, a far higher turnout than recent elections held in other democracies such as the United States and Japan. Presidential election days are designated as a national holiday in South Korea to encourage workers to vote, with polls for the snap election staying open between 6 a.m. (Monday 2100 GMT) and 8 p.m. (1100 GMT) on Tuesday. "Those affected worked hard to achieve this," said Kim Eun-jung, Deputy Secretary General at the People's Solidarity for Participatory Democracy, a non-governmental body, highlighting how delivery workers were excluded from current labour protection laws. The June 3 presidential election was called after the Constitutional Court ousted president Yoon Suk Yeol earlier this year for his short-lived imposition of martial law on December 3.
