* Nikkei 225 Stock Average: -12.88 (-0.1%) to 18,040.93; First decline in five trading sessions
* Nikkei 225 futures Osaka: -10 (-0.06%) to 18,040
* TOPIX 1st Section: +1.94 (+0.1%) to 1,778.50; Advancers 685 x decliners 929 (unchanged 118), new highs 94 x new lows 21
* JASDAQ: +0.16 (+0.2%) to 81.21
Browsing Posts published on June 6, 2007
A Bloomberg story ahead of market action in Asia on Wednesday suggested as much. Bond yields are becoming increasingly attractive and could prompt changes in portfolio / fund allocations.
The yen strengthened against the US$; JGBs (Japanese government bonds) are now at 11-month highs, while 2-year U.S. treasuries hit 5% for the first time since August, according to the Bloomberg report. The ECB is expected to hike to 4%; an announcement is expected shortly. Some question how much more the ECB can hike. This could result in more yen buying, but maybe not for long, if Japanese shift more funds overseas, especially for debt securities / funds — if there will be no further hikes (or an end in sight), there’s less risk of capital loss, while still receiving the higher yield compared to domestic issues.
More on this topic
(What's this?)
The Impact Of Rising Interest Rates On Stocks And Bonds
(Disciplined Approach to Investing, 2/26/10)
Bill Gross on the Divergent Impact of Interest Rates
(naked capitalism, 6/14/07)
FYI, see the chart below for the latest American Association of Individual Investors [AAII] survey released 6/4, dated 5/31. Note last week’s readings were: Bullish: 38.39%, Neutral: 25.00%, Bearish: 36.61%.
All I can say is I hope he still provides market commentary from time to time. It has been great having Koll chime in on such a frequent basis over the years.
Koll told Bloomberg he’d make an announcement about his future plans in a few days.
I wonder if it’s safe to assume Kathy Matsui, his wife, will stay on at Goldman Sachs Japan as chief strategist.
