Latest news with #MitsubishiUFJMorganStanleySecurities
Wall Street Journal
2 days ago
- Business
- Wall Street Journal
JGB Futures Edge Higher on Possible Position Adjustments
0009 GMT — JGB futures edge higher in morning Tokyo session on possible position adjustments. However, gains are likely to be curbed by President Trump's announcement of a U.S.-EU trade agreement. Trump said the U.S. would set a baseline tariff of 15% for European goods. Although the tariff rate was as previously reported, a risk-on mood will probably spread in financial markets, Mitsubishi UFJ Morgan Stanley Securities' fixed income strategists say in a commentary. This may also support expectations of a Bank of Japan rate increase this year, the strategists add. The 10-year JGB futures are higher by 0.13 yen to 137.56 yen. (
Japan Times
02-05-2025
- Business
- Japan Times
MUFG joint venture stops selling structured loans after scrutiny
Mitsubishi UFJ Morgan Stanley Securities has stopped selling so-called structured loans after purchases of the products by regional banks prompted a regulatory backlash. The firm discontinued sales this month of the products, including Japanese government bonds repackaged into loans, a representative for the joint venture between Mitsubishi UFJ Financial Group and Morgan Stanley said. It's the first known instance of a major brokerage ending this business in what was a booming market. MUMSS, as the firm is known, said buyers of structured loans do not have to disclose their mark-to-market valuation, which is required for effective bond investments. If regional financial institutions are actively engaging in this area, this could give the impression that their lending is growing, hence the decision by the firm to stop handling these products, MUMSS said. Japan's financial regulator said earlier in the year that it is planning a sweeping crackdown on $67 billion of high-yield loans backed by government bonds and other assets. Officials have been concerned that some lenders lack proper risk management for the opaque products and could suffer mounting losses if market rates move against them. Several Japanese brokerages had second thoughts about selling these products after the regulator's criticism and scrutiny. MUMSS said it has sold the structured loans under established internal systems and procedures, in accordance with the laws.
Wall Street Journal
17-04-2025
- Business
- Wall Street Journal
JGBs Consolidate, With Focus on U.S.-Japan Trade Talks
0040 GMT — JGBs consolidate in the morning Tokyo session, with focus on U.S.-Japan trade talks. Japanese government bond prices are likely to continue rising today, Mitsubishi UFJ Morgan Stanley Securities fixed income strategists say in a research report. However, as the outcome of U.S.-Japan negotiations over tariffs becomes clear, the market could move in either a risk-on or risk-off direction, the strategists say. Markets will likely keep a close eye on the situation, they add. The 5-year JGB yield is up 0.5bp at 0.840%; the 10-year yield is unchanged at 1.290%. (
Khaleej Times
17-02-2025
- Business
- Khaleej Times
Japan braces for BOJ to lift rates sooner and higher
Hawkish comments from the Bank of Japan and sticky inflation are lifting bond yields to multi-year highs and pushing forward rate hike expectations, shaking long-held views that rates would not rise much in the historically deflation-prone economy. Mitsubishi UFJ Morgan Stanley Securities said on Monday it now expects the BOJ to raise interest rates to 0.75% in July from 0.5% currently, instead of in October-December. It also pushed forward the timing of a subsequent hike to 1.0% to January 2026 from the final quarter of that year, pointing to growing signs that price pressures will persist. Former BOJ official Nobuyasu Atago sees the chance of a hike at the April 30-May 1 meeting, given the BOJ's rising attention to the risk of an inflation overshoot. "The BOJ's next rate hike could come unexpectedly soon. Markets are probably starting to price that in," he said on recent rises in Japanese bond yields. Japanese government bond yields have risen as markets rethink their view that the BOJ won't push up rates beyond 1% - the lower end of its staff estimate that puts Japan's nominal neutral rate in a range of 1% to 2.5%. The benchmark 10-year yield rose 2.5 basis points to 1.375% on Monday, hitting the highest level since 2010. The five-year yield also rose 3.5 points to 1.040%, a level unseen since 2008. Japan's solid October-December GDP data on Monday, coupled with recent strong inflation, have pushed up the yen and bond yields by cementing expectations of a near-term rate hike. BOJ board member Hajime Takata's speech and news conference on Wednesday will be scrutinised by markets for clues on the timing and pace of further rate hikes. The BOJ raised short-term rates to 0.5% in January and signaled its readiness to hike further on the view the economy was progressing towards durably hitting its 2% inflation target. In a quarterly report issued on January 24, the BOJ included analyses on how chronic labour shortages are leading to growing wage-driven inflation - building the case for more rate hikes. A week later, BOJ Deputy Governor Ryozo Himino said it was "not normal" for Japan's real interest rates to remain negative for too long. Board member Naoki Tamura also said earlier this month the BOJ must raise rates to at least 1% by early 2026. The hawkish BOJ signals have led markets to price in a roughly 80% chance of a rate hike to 0.75% in July. A private sector survey showed most economists projecting the next hike to come in the latter half of this year. Former BOJ board member Makoto Sakurai, who retains close contact with incumbent policymakers, expects the BOJ to raise rates to at least 1.5% in the next two years. The International Monetary Fund sees Japan's neutral rate, the level at which policy neither slows nor fuels growth, to be in a band of 1% to 2% with a mid-point of 1.5%, and predicts the BOJ to hike rates around that level by the end of 2027. Some analysts see U.S. President Donald Trump's focus on fixing trade imbalances as working in favour of BOJ rate hikes by watering down the Japanese government's historic resistance to a stronger yen and, by association, higher rates. U.S. Treasury Secretary Scott Bessent said on Friday Washington would look at whether countries are engaging in currency manipulation, in setting plans for reciprocal tariffs. "The Japanese government is mindful of the political risk of being seen (by Washington) as leaving the weak yen unattended," said Naomi Muguruma, chief bond strategist at Mitsubishi UFJ Morgan Stanley Securities.
