28 Nov 2014
Japan data was the headline driver in Asia – DB
FXStreet (Barcelona) - The Deutsche Bank Research Team, note that Japan seems to be the main headline driver in Asia this morning following a host of mixed data releases.
Key Quotes
“Starting with retail sales, the print came in at a disappointing -1.4% mom (vs. -0.5% expected), although this appears to be somewhat offset by a better industrial production reading (+0.2% mom vs. -0.6% mom expected) and slight drop in the jobless rate to +3.5% from +3.6% previously, matching the 17yr low seen in August and May. “
“In terms of inflation, CPI (ex food) slipped to +2.9% yoy, marking a third consecutive monthly decline whilst stripping out the effect of the sales tax showed a fairly subdued +0.9% core print.”
“In fact, staying on Japan, 2y JGB’s dropped below zero for the first time ever this morning ahead of today’s auction. As we type, the notes are trading at -0.002% - matching only Germany, Sweden, Netherlands, Denmark, Finland and Switzerland with similar duration bonds trading with a negative yield.”
Key Quotes
“Starting with retail sales, the print came in at a disappointing -1.4% mom (vs. -0.5% expected), although this appears to be somewhat offset by a better industrial production reading (+0.2% mom vs. -0.6% mom expected) and slight drop in the jobless rate to +3.5% from +3.6% previously, matching the 17yr low seen in August and May. “
“In terms of inflation, CPI (ex food) slipped to +2.9% yoy, marking a third consecutive monthly decline whilst stripping out the effect of the sales tax showed a fairly subdued +0.9% core print.”
“In fact, staying on Japan, 2y JGB’s dropped below zero for the first time ever this morning ahead of today’s auction. As we type, the notes are trading at -0.002% - matching only Germany, Sweden, Netherlands, Denmark, Finland and Switzerland with similar duration bonds trading with a negative yield.”