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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (9713)	3/8/2004 1:27:13 PM
From: Haim R. Branisteanu	Respond to of 110194

were is it ? in the real world not on gov. statistics, but they will be forced to publish it this month

To: mishedlo who wrote (9713)	3/8/2004 1:42:10 PM
From: russwinter	Read Replies (2) \| Respond to of 110194

Succo asks where the bond vigilantes are? There obviously are none, as this is not a bond "market" by definition. BOJ good today for another $10 billion in money printing. This PPI stuff is really right out of the Twilight Zon, "there's something, something on the wing!". I try and tone down my conspiracy theory propensities (take a deep breath and say, "there is no conspiracy, there is no conspiracy"), but this just takes the cake. So sorry, yes there is a conspiracy and the BOJ totally controls the bond market and US inflationary monetary policy. How can that be denied? Reuters FOREX-Dollar hits 5-month high vs yen, BOJ suspected Monday March 8, 12:15 pm ET By John Parry (Updates prices, adds comment) NEW YORK, March 8 (Reuters) - The dollar hit a five-month high against the yen on Monday and steadied against the euro, supported by suspected intervention by Japan to keep the greenback from sliding after Friday's dismal U.S. jobs data. Persistent softness in the U.S. labor market appears to offer little prospect of an increase in official U.S. interest rates any time soon, which will likely hurt the dollar against currencies which offer higher yields to investors. Traders said there was demand for dollars against yen from Japanese and U.S. commercial banks and cited speculation the Bank of Japan may have been among bidders around 112.0 yen. The Bank of Japan, which acts on behalf of Japan's Ministry of Finance in interventions, is aiming to weaken the yen ahead of Japan's fiscal year close at the end of March as Japanese companies repatriate earnings from abroad. A weaker yen helps boost corporate results. "There is solid interest from Tokyo money center banks," said Craig Russell, senior foreign exchange dealer with Alaron FX in Chicago, adding that the dollar "has a bid tone to it" against the yen. Should the dollar push above Monday's five-month highs, one of the next key areas would be 112.70 yen, a decisive break above which could pave the way for a dollar climb to about 113.10 yen, he said. Earlier in Europe, the dollar rose as high as 112.32 yen (JPY=), surpassing Friday's peak by a whisker to notch its highest level since late September. Dealers estimated Japan spent almost 1 trillion yen on Friday to support the dollar and suspected Japanese authorities were still conducting covert yen-selling activity on Monday. "There is no sign the BoJ is ready to step back from its intervention," said Mansoor Mohi-uddin, chief currency strategist at UBS Warburg (News - Websites) . Around noon in New York, the euro traded at $1.2367 (EUR=), steady from the previous New York close and a good distance from the euro's three-month low last Wednesday of $1.2056. On Friday, the disappointing U.S. jobs report hurt the dollar and pushed the euro up as high as $1.2432. Against the yen, the dollar was trading at 112.10 yen (JPY=), nearly flat on the day. The euro was near a recent eight-month high versus the yen, trading at 138.64 (EURJPY=). Sterling (GBP=) traded little changed at $1.8470. "Ultimately, the activities from Japan are helping the dollar in general," said Derek Halpenny, currency economist at Bank of Tokyo Mitsubishi in London. "There is still a belief in the market that the BoJ are here or just below here. They have clearly set out on a very determined effort to drive the yen weaker." But against most currencies the dollar's underlying sentiment was bearish, after Friday's news that the U.S. economy created far fewer jobs than expected in February convinced markets that yield-boosting U.S. interest rate hikes remained a distant prospect. For the euro, "the $1.2330 level is key on the downside. Consolidation below that would indicate the strengthening U.S. dollar (move) is still intact, but above that (level, for the euro) we are still not so convinced," said Susan Stearns, vice president of institutional foreign exchange sales with Bank of Montreal in New York. "At this juncture the euro bulls are still quite eager to consider ... that the trend for a higher euro remains intact," after Friday's "ugly" reversal lower for the dollar, Stearns added. Analysts said factors that have punished the dollar in recent months -- hefty U.S. budget and trade deficits, ultra-low interest rates and feeble job creation -- still shadow the dollar. Little in the way of major economic data releases were due on Monday, and European Central Bank President Jean-Claude Trichet said central bankers from the Group of 10 nations, meeting in Basel, did not discuss foreign exchange markets. But traders remain nervous about what Trichet might say. His comments about "brutal" currency moves when the euro scaled record highs in January contributed to keeping the single currency from breaking above the $1.30 level. (Additional reporting by Justyna Pawlak and Christina Fincher in London)