Bank of Japan’s Standstill, Treasury Yields Keep Progressing
Yesterday, the US Senate voted for the tax bill and President Trump is yet to sign it and then it will come into effect in the coming year. Corporate tax rate will be cut from 35% to 21%. DOW mildly reduced -0.11% and closed at 24726.65. S&P 500 fell -0.08% and settled at 2679.25. Greenback has reinforced but the recovery is limited. Japanese Yen became the softest currency as Bank of Japan hasn’t changed the policy. Short term interest rate target is holding at -0.1%. The single currency stays the firmest.
US 10 year yield keep rising, having hit the resistance of 2.475. Investors expect more bond selling in 2018 due to the tax law and also due to Fed’s balance sheet lowering. Germany along with the European Central Bank will also start selling more bunds.
New Zealand Gross Domestic Product lifted 0.6% qoq in the third quarter. British Gfk consumer confidence fell to -13 this month. Today, Swiss will release trade balance and UK will present public sector borrowing. Canada will show Consumer Price Index and retail sales, US will announce Philly Fed survey, jobless claims, house price index, leading indicators and final Gross Domestic Product of a third quarter.