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Nikkei ends higher in 4-day rally on weak yen against U.S. dollar

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Good news and I'll take it.

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On the top-tier Prime Market, gainers were led by mining, real estate, and oil and coal product issues.

Would be interesting to read their ESG blurbs!

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BOJ now owns 50% of all outstanding Japanese Government Bonds. Now that's news. Oh, 80% of ETF market as well.

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The U.S. dollar remained firm in the lower 135 yen range as an overnight rise in U.S. Treasury yields raised expectations that the interest rate gap between Japan and the United States would widen, dealers said.

Well, the yen is currently trading this hour at 136.114 up .53% for the day and 6.45% MoM, just off of the 24 year low of 136.7 hit earlier in June. Reflecting the reality that U.S. 10 year bonds are currently trading 3.2433, up 0.0493 overnight but down -0.03% WoW, mostly in anticipation of a host of U.S. reports due this week, along with preliminary inflation reports for major Euro Area countries this week. Japanese 10 year yield bonds are currently trading 0.2350, down -0.01% for the week.

Just today: the yield on the German 10 year Bund rose to above 1.65%, approaching an 8 1/2 year high of 1.926% hit on June 16th. This after ECB Chief Lagarde reaffirmed that the central bank would raise rates by 25bps in July, the first hike in 11 years. AND the yield on the Swiss 10-year government bond rose above the 1.4% level, edging closer to the 11 year high of 1.6% touched on June 16. AND the ECB will continue with its policy normalisation path to bring Euro Area inflation back to the 2% target, President Lagarde announced today. Lagarde confirmed that net asset purchases will end on July 1st and interest rates will be raised by 25bps in July, the first rate hike in 11 years.

Other currency news? The Indian rupee hit a fresh low of 78.9 against the US dollar, losing almost 6% YoY (currently trading at 78.9120, up 0.63% for the day) . This after the Reserve Bank of India, tracking other central banks, raised the repo rate by 50 bps in June and 40 bps in May.

Have a good day.

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