http://www.bloomberg.com/news/…-injects-record-cash.html
ZitatAlles anzeigenJapan’s Bond Futures Gain a Third Week as Central Bank Injects Record Cash
By Masaki Kondo - Mar 25, 2011 10:53 PM GMT+0100
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The Bank of Japan’s 40 trillion yen ($494 billion) of successive one-day cash injections from March 14 to March 22 helped increase lenders’ deposits at the central bank to a record. The BOJ maintained its overnight lending rate last week at a range of between zero and 0.1 percent and doubled the size of its fund that bought assets including government bonds and corporate debt.
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Japan may need to consider compiling an extra budget within a month to help pay for reconstruction efforts after the earthquake, Economic and Fiscal Policy Minister Kaoru Yosano said yesterday. A combination of funding sources may need to be mulled, including spending cuts, a review of taxes and bond issuance, he said. Japan’s damage from the magnitude 9.0 earthquake and subsequent tsunami was estimated at as much as 25 trillion yen, a government report showed on March 23, an amount almost four times the cost of Hurricane Katrina in the U.S.
The gain in bonds was tempered as speculation the global economy is improving boosted shares. The Nikkei 225 (NKY) Stock Average climbed 3.6 percent this week.
“Expectations for a global economic recovery are largely intact, which is a catalyst for bond yields to rise,” Nikko’s Noji said. “Domestic investors are reluctant to trade before the end of this fiscal year” as financial companies are closing their books and preparing earnings reports, he said.
Gruß,
gutso