The probability of interest rate swaps raising interest rate within the year dropped sharply, and the Bank of Japan switched to pigeon faction in just 1 week
2024/8/8 14:40 JST (some excerpts)
If the outlook or risk changes due to market fluctuations, the interest rate pass will change, Deputy Governor Uchida
Policy stance “substantial correction” from July Bank of Japan meeting - SBI certificate, Mr. Daoie
The probability of interest rate hikes by the end of the year has declined sharply in the yen interest rate swap market. The Bank of Japan raised policy interest rates at the monetary policy meeting last week, and Governor Ueda Kazuo just showed a positive hawkish stance on further interest rate hikes, but in response to financial market turmoil such as the sharp rise in yen and stock price crashes that followed, it changed to a dovish stance in just one week.
In the overnight index swap (OIS) market, the probability of raising policy interest rates by 25 basis points (bp, 1 bp = 0.01%) at the Bank of Japan meeting in December dropped from the 60% range on the 1st to the 20% range. The 2-year government bond yield had risen to 0.46% when additional interest rate hikes were factored in, but the factorization fell to 0.25% at one point.
If the outlook or risk changes due to market fluctuations, the interest rate pass will change, Deputy Governor Uchida
Policy stance “substantial correction” from July Bank of Japan meeting - SBI certificate, Mr. Daoie
The probability of interest rate hikes by the end of the year has declined sharply in the yen interest rate swap market. The Bank of Japan raised policy interest rates at the monetary policy meeting last week, and Governor Ueda Kazuo just showed a positive hawkish stance on further interest rate hikes, but in response to financial market turmoil such as the sharp rise in yen and stock price crashes that followed, it changed to a dovish stance in just one week.
In the overnight index swap (OIS) market, the probability of raising policy interest rates by 25 basis points (bp, 1 bp = 0.01%) at the Bank of Japan meeting in December dropped from the 60% range on the 1st to the 20% range. The 2-year government bond yield had risen to 0.46% when additional interest rate hikes were factored in, but the factorization fell to 0.25% at one point.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
