2010/10/05 17:51DJ JGBs Rise Following Surprise Policy Moves From Bank Of Japan
TOKYO -Japanese government bonds rose Tuesday after the Bank of Japan announced a surprise rate cut and further monetary easing measures including bond purchases, sending the five-year JGB yield to its lowest level in more than seven years. The Bank of Japan cut its policy interest rate to a 0.00%.10% range from 0.10%. It also announced a Y5 trillion program to buy private- and public-sector assets. The market was caught by surprise as few investors had expected any rate cut, while the range of assets the bank will buy was also broader than expected. 'It was such a surprising step,' said RuiXue Xu, a strategist at RBS Securities Japan. 'The Bank of Japan maximized the effect of its announcement by doing everything it could do now.' As investors piled into short- and medium-term JGBs, the five-year yield fell to 0.220%, its lowest since June 2003. The benchmark 10-year yield was down 2.5 basis points at 0.910% at 0600 GMT. Yields could stay under pressure as investors react to the central bank's move in coming sessions, analysts said. 'In essence the BOJ is re-establishing quantitative easing, inasmuch as it is expanding its balance sheet against asset purchases by Y5 trillion,' said Christian Carrillo, senior rates strategist at Societe Generale. As the government hashes out further stimulus spending to be funded by a supplementary budget for the fiscal year ending March 2011, the central bank's move essentially restores the positive demand/supply balance seen in the first half of this fiscal year, Carrillo said. The BOJ's decision to increase Japanese government bond buying avoided conflict with a law limiting the quantity of such debt the bank can buy, analysts said. 'The Bank said the new funds' JGBs buying is a temporary measure and different from the Rinban and therefore will be excluded from the banknote rule,' said RBS Securities' Xu. 'We think this is important and meaningful as the Bank has made a new card and left room to expand JGB buying via boosting the amount of the new funds without restriction within the banknote rule.' The banknote rule states that the central bank can buy debt only up to the amount of Japanese banknotes in circulation.
2010/10/05 17:47=DJ Forex Focus: Policy Divide Makes Currencies Less Predictable
2010/10/05 17:38*DJ Goldman Sachs Keeps 12-Mo Gold Forecast At $1,365/Oz
2010/10/05 17:38*DJ Goldman Sachs Keeps 12-Mo Lead, Nickel Forecasts Little Changed
2010/10/05 17:37*DJ Goldman Sachs Raises 12-Mo Zinc Forecast By 35% To $3,000/Ton
2010/10/05 17:37*DJ Goldman Sachs Ups 12-Mo Copper Forecast By 37% To $11,000/Ton
2010/10/05 17:26=DJ DATA SNAP: Euro-Zone Retail Sales Fall in August
LONDON -Retail sales in the 16 countries that use the euro fell in August, indicating that consumer demand is unlikely to boost growth in the third quarter. The European Union's Eurostat statistics agency Tuesday said retail sales fell by 0.4% in August from July, but were up 0.6% from the same month in 2009. It was the biggest drop in sales during a single month since April. The decline was larger than expected. Economists surveyed last week by estimated that sales fell by 0.2%. The larger-than-expected drop stemmed from a 0.7% decline in sales of food, drink and tobacco, while non-food sales rose 0.3%. The decline was broad-based, with retail sales falling 0.2% in Germany and 0.8% in France. Retail sales in Spain rose by 1.1%, despite high and rising unemployment rates. Surveys indicate that after dipping in May at the height of the euro zone's fiscal crisis, consumer confidence recovered over the summer months. However, it remains weak by historic standards and consumers remain reluctant to spend. That suggests inflationary pressures will remain muted in the months ahead, giving the European Central bank leeway to keep its key interest rate unchanged at 1.0%. -Paul Hannon, , +44 20 7842 9491, paul.hannon@dowjones.com
2010/10/05 17:14=DJ DATA SNAP: UK Sep Services PMI Rises To 52.8 From 51.3
2010/10/05 17:00*DJ Euro-Zone Aug Retail Sales -0.4% On Mo; +0.6% On Yr
2010/10/05 17:00*DJ Euro-Zone Aug Retail Sales Forecast -0.2% MM; +0.6% YY
2010/10/05 16:49DJ Spot Gold Hits New Record At $1,328.22/Oz On Rising Euro
LONDON -Spot gold Tuesday broke to a new record high of more than $1,328 a troy ounce as the euro gained against the dollar. Stronger-than-expected purchasing managers' index data from the euro zone bolstered the single currency, which at 0810 GMT traded 0.7% higher against the greenback at $1.3767. Rising in tandem, spot gold hit a new record and intraday high of $1,328.22/oz at 0753 GMT, up 1.1% on the day. The charts for gold remain strong and 'point to further gains in the sessions ahead,' Barclays Capital technical analysts said in a report. 'Indeed, seasonal factors remain supportive--gold has risen in the fourth quarter for the past eight years in a row,' they said. 'We look for a test of $1,330/oz or even our $1,350/oz-$1,370/oz target zone to occur sooner rather than later.' At 0810 GMT, spot gold traded up 0.9% on the day at $1,325.90/oz.
2010/10/05 16:44*DJ Dollar Index Falls Below 78.0, First Time Since Late January
2010/10/05 16:34DJ Japan Sengoku: Gov't Welcomes BOJ Decision On Monetary Easing -Kyodo
TOKYO -The Japanese government 'welcomes' the Bank of Japan's latest decision to ease monetary policy further to help spur the country's growth, Kyodo News reported Tuesday, citing the government's top spokesman. Chief Cabinet Secretary Yoshito Sengoku said at a news conference that the decision was 'in concert with the government's efforts to overcome deflation and we want to strongly welcome it.' Earlier in the day, the central bank said it will carry out what it calls 'comprehensive monetary easing,' steps ranging from keeping its benchmark interest rate at effectively zero% until the end of deflation to a plan to set up a fund to buy government bonds and other assets, in an attempt to shore up the fragile economy.
2010/10/05 16:34*DJ Gilts Pare Gains After Better Than Expected UK Services PMI
2010/10/05 16:30DJ BOJ Shirakawa: BOJ Eased As Economic Outlook Worse Than Expected
TOKYO -Bank of Japan Gov. Masaaki Shirakawa said Tuesday that the central bank's surprise decision to take additional easing action was based on a worse-than-expected outlook for the domestic economy. Speaking at a press conference after wrapping up a two-day policy board meeting, Shirakawa added that 'comprehensive easing' includes aspects of both credit easing and quantitative expansion. The central bank decided to introduce the new measures as a package to maximize policy effects, he said. Earlier in the day, the central bank announced an ambitious Y35 trillion monetary easing program to spur economic growth while cutting interest rates to virtually zero and launching a Y5 trillion program to buy private- and public-sector assets.
2010/10/05 16:29*DJ UK Sep Services PMI Forecast At 51.2
2010/10/05 16:29*DJ UK Aug Services PMI Was 51.3
2010/10/05 16:28*DJ UK Sep Services PMI 52.8 - Sources
2010/10/05 16:25=DJ UPDATE: Bank Of Japan Announces Ambitious Monetary Easing Steps
TOKYO -The Bank Of Japan caught financial markets by surprise Tuesday, announcing an ambitious Y35 trillion monetary easing program to spur economic growth while cutting interest rates to virtually zero and launching a Y5 trillion program to buy private- and public-sector assets. The BOJ acted under pressure from the government to do more to promote growth and take the steam out of the high yen, which his stymied the critical export sector. The BOJ said its policy board agreed on the measures unanimously. With short-term rates already near zero for years as Japan has fought deflation, the BOJ said the new program was designed to 'encourage the decline in longer-term interest rates and various risk premiums to further enhance monetary easing.' The central bank acknowledged its move was 'an extraordinary measure for a central bank.' It said it acted in view of the slowing economic recovery and the damage the high yen was doing to business sentiment. The BOJ noted 'heightened uncertainty about the future, especially for the U.S. economy.' Among the specifics, the central bank said it would cut its key overnight call rate to a range of 0.0%.1% for the foreseeable future, with rates to remain at this virtual zero level until prices begin to stabilize from deflationary pressures. The central bank also decided to establish a temporary fund in its balance sheet to buy a range of assets--both public and private sector--to pump cash into the economy. It said its purchases will include long-term government bonds, commercial paper, asset-backed commercial paper and corporate bonds. The BOJ will also buy exchange-traded funds and government notes. It said such purchases would total Y5 trillion. BOJ officials had opposed the idea of a major increase in government bond purchases on the view it would fan market concerns that the central bank is handing the government a blank check, possibly undermining long-term bond credibility. But the central bank said asset purchases would be on a 'temporary basis'--language that some traders interpreted as negative, reversing some of the initial yen selling that followed the initial news. 'The surprise invited some yen selling, but I don't think the BOJ's move will be enough to produce any sustained yen weakening,' said Masanobu Ishikawa, general manager of spot foreign exchange trading at Tokyo Forex & Ueda Harlow. The government has grown increasingly concerned about the high yen, undertaking Y2 trillion of market intervention as the yen hit 15-year highs in early September. The intervention initially succeeded in pushing the dollar up by about Y3 from a low of Y82.87, but the greenback has since lost most of that gain. The main reason for the dollar's lethargy is seen as the weakening U.S. economy and expectations the U.S. Federal Reserve will itself take drastic measures to pump money into the U.S. economy, negating Japan's yen-weakening program. Analysts have dubbed this a 'monetary easing war.' Any further weakness in U.S. economic indicators 'will add to the view that the FOMC is going to conduct even more easing, and even just this kind of speculation is enough to perpetuate dollar-weakness, yen-strength,' Ishikawa said. Hirokata Kusaba, senior economist at Mizuho Research Institute echoed this view, saying 'there will be no substantive effect from going from the already ultra-low 0.1% to this range.' 'The only effect on markets will be from the surprise of the announcement, but that will fade,' he said. 'There's no doubt the BOJ tried its best today, but it's hard to see how the measures as a whole will help the economy that much.' JGBs rose sharply after the announcement. Lead December futures rose 0.36 at 143.81 vs 143.43 at the opening of afternoon session. The 10-year was yield was down 3.5 basis points to 0.900%, while the yield on the five-year bond fell to 0.22%, the lowest level since June 2003. Stocks where higher on the view the move would help lower the yen. The Nikkei Stock Average closed up 1.5% at 9518.76, its biggest gain since Sept. 15.
2010/10/05 16:13*DJ Japan Fin Min: Want To Support BOJ's Moves By Doing Whatever Government Can Do
2010/10/05 16:12DJ Japan Economy Minister Kaieda: Highly Evaluate BOJ's Timely Action
TOKYO -Japan's economy minister Tuesday said he highly evaluates the measures that the Bank of Japan announced earlier in the day to help the economy fight prolonged deflation and a strong yen. 'The BOJ's move was very timely, and I think it met Prime Minister Naoto Kan's expectations' to do more to help prop up the economy, said Economic and Fiscal Policy Minister Banri Kaieda. Earlier in the day, the BOJ cut its policy interest rate to virtually zero and announced 'comprehensive monetary easing' worth Y35 trillion to spur financial growth, including a temporary Y5 trillion fund to buy private and public sector assets--all of which are strong measures that took financial markets by surprise. Right after the BOJ announced the measures, Japanese share prices and bonds shot up, and the yen declined sharply against the dollar. 'I think the markets are taking the BOJ's move positively,' Kaieda said. He added that the yen's movement remains of concern and that the government will continue to pay close attention to it.
2010/10/05 16:11*DJ Japan Fin Min: Will Take Decisive Action When Necessary
2010/10/05 16:11*DJ Japan Fin Min Noda: Hope BOJ Steps Stabilize FX
2010/10/05 16:08*DJ Hang Seng Index Rises 19 Out Of 23 Trading Sessions
2010/10/05 16:07*DJ Hang Seng Index Ends Up 0.1% At 22,639; New 2010 Closing High
2010/10/05 16:04*DJ Spot Gold Hits New Record At $1,328.22/Oz On Rising Euro
2010/10/05 15:59*DJ Euro-Zone Aug Services PMI Was 55.9
2010/10/05 15:58*DJ Euro-Zone Sep Services PMI 54.1 - Sources
2010/10/05 15:58*DJ Euro-Zone Sep Services PMI Forecast At 53.6
2010/10/05 15:54*DJ German Aug Services PMI Was 57.2
2010/10/05 15:54*DJ German Sep Services PMI Forcast At 54.6
2010/10/05 15:53*DJ German Sep Services PMI 54.9 - Sources
2010/10/05 15:50DJ Nikko Asset Management In Talks To Buy DBS Asset Management - Source
SINGAPORE -Japan's Nikko Asset Management is in talks to buy DBS Asset Management in a deal in which Singapore's DBS Group Holdings. Ltd. (D05.SG) could take a smaller stake in the parent Nikko Co. (6306.TO), a person familiar with the situation said Tuesday.'There are talks going on,' the person, who didn't want to be named, said.The person also said DBS is talking to other parties about possible strategic partnerships.DBS declined to comment on the Nikko talks but a spokesman for the Singapore bank said a priority for the bank is to build a 'leading' Asian wealth management business.'In line with this, DBS is exploring various options, including a possible strategic partnership for its asset management arm, to enable the business to better intermediate burgeoning wealth flows in Asia,' the spokesman said.
2010/10/05 15:49*DJ Dollar Trades Below CHF0.97, First Time Since March '08 -EBS
2010/10/05 15:48*DJ French Sep Services PMI Forecast At 58.8
2010/10/05 15:48*DJ French Aug Services PMI Was 60.4
2010/10/05 15:48*DJ French Sep Services PMI 58.2 - Sources
2010/10/05 15:43*DJ Italian Sep Services PMI 51.3 - Sources
2010/10/05 15:43*DJ Italian Sep Services PMI Forecast At 49.8
2010/10/05 15:43*DJ Italian Aug Services PMI Was 51.4
2010/10/05 15:40=DJ WORLD FOREX: Yen Falls On BOJ Surprise, But May Recover Soon -3-
For that reason, the impact of Tuesday's BOJ surprise on the dollar-yen "may be limited if the Fed takes more aggressive measures," said Barclays Capital's Yamamoto.If any further weakness in U.S. economic indicators emerges, "that will add to the view the FOMC is going to conduct even more easing, and even just this kind of speculation is enough to perpetuate dollar-weakness, yen-strength," said Masanobu Ishikawa, general manager of spot FX at Tokyo Forex & Ueda Harlow.Profit-taking is likely to cap the dollar around Y84.00 for now, Ishikawa said. At 0550 GMT, the U.S. unit was at Y83.82, compared with Y83.44 late Monday in New York. The euro was at Y114.90 compared with Y114.20.The euro was at $1.3708 compared with $1.3690. The ICE Dollar Index, which tracks the greenback against a trade-weighted basket of currencies including the euro and yen, was at 78.408 from 78.439.
2010/10/05 15:40DJ Tokyo Shares Rise As BOJ Surprise Rate Cut Weakens Yen -2-
2010/10/05 15:39*DJ BOJ Shirakawa: Tuesday's Steps Were 'Comprehensive Easing'
2010/10/05 15:37*DJ BOJ Shirakawa: Watching Monetary Policies Of Other Central Banks, Including US Fed
2010/10/05 15:35*DJ BOJ Shirakawa: BOJ Eased As Econ Outlook Worse Than Expected
2010/10/05 15:35*DJ BOJ Shirakawa: To Start Buying Assets As Soon As Preparation Done
2010/10/05 15:34DJ Tokyo Shares Rise As BOJ Surprise Rate Cut Weakens Yen
2010/10/05 15:33=DJ WORLD FOREX: Yen Falls On BOJ Surprise, But May Recover Soon
2010/10/05 15:33=DJ WORLD FOREX: Yen Falls On BOJ Surprise, But May Recover Soon -2-
2010/10/05 15:15*DJ Swiss Sep CPI Unch On Month
2010/10/05 15:15*DJ Swiss Sep CPI +0.3% On Year; Forecast At +0.3%
2010/10/05 15:13*DJ Japan Govt Sengoku: Govt Welcomes BOJ Decision On Monetary Easing-Kyodo
2010/10/05 15:03*DJ FTSE 100 Up 0.1% After The Open
2010/10/05 15:01*DJ Moody's Changes Outlook On Turkey's Ratings To Positive From Stable
2010/10/05 15:00DJ Forex Options: Dollar/Yen Options Up; Dollar Decline Expected
TOKYO -Dollar/yen options rose in Tokyo Tuesday as investors bought short-term contracts to hedge against dollar decline, indicating expectations for the underlying exchange rate to continue falling over the coming days. Benchmark volatilities implied by one-month at-the-money options rose to 10.95%/11.65% in Tokyo from 10.80%/11.50% Monday in New York. An options dealer at a major Japanese bank said demand for downside hedges increased as the greenback fell overnight close to Y83.15--its lowest since the Japanese government intervened in the currency market in mid-September to try and stem the yen's rise. Market participants are now awaiting the result of the Bank of Japan's two-day policy-setting meeting in the coming hours. Expectation is for the central bank to further ease its monetary policy, particularly by expanding its liquidity-provision measures. This could involve the bank increasing its supply of six-month loans or buying more short-term government debt. The options dealer said, however, that if any BOJ action fails to exceed such measures, then the dollar will likely fall against the yen because such expected steps have already been priced in. The dealer added, though, that as long as the greenback doesn't fall below Y83.00, volatilities are unlikely to change much later in the global day. Elsewhere, while some investors seek short-term contracts, others are interested in selling long-term contracts. One player sold dollar-call/yen-put options contract with a strike price of Y86.50 and implied volatility of 10.95% with a November-end expiry for an unknown amount, the dealer said.
2010/10/05 14:59*DJ Japan Econ Min Kaieda: Will Keep Monitoring Forex
2010/10/05 14:58*DJ Japan Econ Min Kaieda: Think Fincl Mkts Taking BOJ Move Positively
2010/10/05 14:57*DJ Japan Econ Min Kaieda: Highly Evaluate BOJ's Timely Action
2010/10/05 14:55*DJ BOK May Have Bought Around $1B To Keep Dollar Above KRW1,130 Tue -Traders
2010/10/05 14:52PRESS RELEASE: Moody's Places Ireland's Aa2 Rating On Review For Possible Downgrade
Moody's Investors Service has today placed Ireland's Aa2 local currency and foreign currency government bond ratings on review for possible downgrade. In a related rating action, Ireland's short-term rating was affirmed at Prime-1. Moody's decision to initiate this review was prompted by (1) increased uncertainty regarding Ireland's ability to preserve government financial strength after additional bank recapitalisation measures announced on 30 September; (2) the clouded outlook for the recovery of domestic demand in light of recently published data; and (3) a further rise in borrowing costs since our last rating action in July that would -- if sustained -- negatively affect debt dynamics. Moody's has also placed on review for possible downgrade the Aa2 rating of Ireland's National Asset Management Agency , whose debt is fully and unconditionally guaranteed by the government of Ireland. Ireland's Aaa country ceilings for bonds and bank deposits fall under the eurozone's regional Aaa ceilings and are not affected by the rating review. For a more detailed analysis of the review, please refer to Moody's Special Comment entitled 'Key Drivers of Decision to Review Ireland's Aa2 for Possible Downgrade,' which is available on www.moodys.com RATIONALE FOR REVIEW 'Ireland's ability to preserve government financial strength faces increased uncertainty as a result of three main drivers, which together would further increase its debt and aggravate its debt affordability,' says Dietmar Hornung, a Moody's Vice President-Senior Credit Officer and lead sovereign analyst for Ireland. These key drivers are: 1.) Crystallisation of additional bank contingent liabilities. The Irish government has announced a series of additional recapitalisation measures that are likely to raise the government's total cost for bank support by EUR 10-15 billion. These measures will lead to a substantial rise in Ireland's general government deficit to around 32% of GDP this year. 2.) Increased uncertainty regarding the economic outlook. Recently published data highlight Ireland's weak growth prospects, which are a result of the severe downturn in the financial services and real estate sectors as well as an ongoing contraction in private sector credit. Moody's regards Ireland's supply-side characteristics -- i.e. its competitive tax system, flexible labour market, business-friendly environment -- as sources of economic strength. However, fresh uncertainty arises from demand-side weaknesses, particularly the impact of new austerity measures on domestic demand. According to Moody's, these weaknesses raise concerns about a much longer period of recovery and the implication for weaker government revenue. 3.) Elevated borrowing costs. Ireland's borrowing costs have increased considerably since July. In light of these elevated borrowing costs, the interest burden stemming from Ireland's growing debt stock is set to increase significantly in the coming years should interest rates remain at current levels. Moody's measures debt affordability by using the ratio of interest payments on public debt as a share of government revenues. 'Taking these three factors into account, Ireland is on a trajectory toward lower debt affordability over the next three to five years,' says Mr. Hornung. FOCUS OF THE REVIEW Moody's rating review will focus on Ireland's ability to preserve government financial strength in a difficult economic environment. 'A key element of the review is Ireland's revised four-year fiscal plan, which the government will present in early November. The plan will identify measures to stabilise public finances and bring the deficit below 3% of GDP by 2014,' says Mr. Hornung. The analyst noted that banking system developments and any additional transfer of assets to NAMA will also be monitored, in particular as they affect economic activity, the availability of and demand for credit and the government's balance sheet. In Moody's view, the forthcoming fiscal consolidation programme will be challenging given that (1) GDP growth forecasts used in the government's own debt projections now look overly optimistic, and (2) the interest rates at which Ireland borrows have increased significantly. If Moody's decides to downgrade Ireland's ratings at the conclusion of the review, it would most likely be by one notch. A downgrade to the high single-A rating range could occur if Moody's decides that a stabilization of the debt to GDP ratio in the next three to five years appears unlikely. Moody's intends to conclude its review within a three-month period. PREVIOUS RATING ACTIONS & METHODOLOGIES Moody's last rating action affecting Ireland was implemented on 19 July 2010, when the rating agency downgraded Ireland's government bond ratings to Aa2 and assigned a stable outlook. Prior to that, Moody's last rating action on Ireland was taken on 2 July 2009, when the rating agency downgraded Ireland's government bond ratings to Aa1 and assigned a negative outlook. Moody's last rating action affecting NAMA was implemented on 19 July 2010, when the rating agency downgraded the senior unsecured debt issued by NAMA, which is backed by a full guarantee from the Irish government, to Aa2 and assigned a stable outlook. Prior to that, Moody's last rating action on NAMA was taken on 16 June 2010, when the rating agency assigned an initial rating of Aa1 with a negative outlook to the government-backed senior unsecured NAMA debt. The principal methodology used in rating the Government of Ireland is 'Moody's Sovereign Bond Methodology' published in September 2008, which can be found at www.moodys.com in the Rating Methodologies sub-directory under the Research & Ratings tab. Other methodologies and factors that may have been considered in the process of rating this issuer can also be found in the Rating Methodologies sub-directory on Moody's website.
2010/10/05 14:51DJ US Enhances Train Security Amid Travel Warning - Report
WASHINGTON --The U.S. is preparing to strengthen the law enforcement presence on trains and transit systems, ABC News said Monday, amid U.S. travel alerts for a possible terrorist attack in Europe. Coinciding with counterparts in Europe, U.S. train network Amtrak will hold a 'Rail Action Day' Friday, with uniformed officers set to have a highly visible presence on train routes. A U.S. official told ABC News, however, that the exercise was 'long-planned' and 'not connected in any way' to the alert for Europe. The formal U.S. travel alert warned Americans about possible terrorist attacks in Europe, as American and European authorities were searching for suspects, with European railways, subways and tourist spots possibly under threat. European security officials last week said a plot or plots were uncovered suggesting al Qaeda militants were planning to stage simultaneous strikes in the U.K., France and Germany, with a possible Mumbai-style attack in the works. The U.S. travel alert, which was promptly backed up by U.K. and French officials, was unusual and suggested concrete intelligence had emerged, according to a former CIA officer. Such a travel advisory 'only is issued when there is some reason that goes beyond theory, to alert the public,' said Bruce Riedel, a veteran of the CIA who has advised the U.S. administration on Afghanistan and Pakistan.
2010/10/05 14:33DJ Japan MOF Sakurai: BOJ Took Considerable Action
TOKYO -A senior Japanese finance ministry official said Tuesday that the Bank of Japan took considerable steps in its monetary easing earlier in the day. Mitsuru Sakurai, senior vice finance minister, told reporters the government will make good use of the central bank's monetary easing in its own policy response. Earlier Tuesday, in a surprise move, the Bank of Japan decided to cut its overnight call rate to a range of 0.0%.1% in an attempt to ease the crippling impact of the surging yen and deflation on the economy.
2010/10/05 14:29*DJ DBS Group May Get Minority Stake In Nikko For Asset Management Unit Divestment - Source
2010/10/05 14:27*DJ Nikko Asset Management In Talks To Buy DBS Asset Management - Source
2010/10/05 14:19*DJ Dollar Hits CHF0.9704 On EBS; Lowest Since Mar 2008
2010/10/05 14:12=DJ ECB WATCH: EONIA Spike May Send Banks Back To ECB Refinancing
2010/10/05 14:07*DJ Moody's Places Ireland's Aa2 Rating On Review For Possible Downgrade
2010/10/05 14:06*DJ TSE 1st Section Trading Volume Highest Since July 22
2010/10/05 14:04*DJ Nikkei Stock Average Closes With Highest Percent Gain Since Sep 15
2010/10/05 14:02*DJ Nikkei Stock Average Closes Up 1.5% At 9518.76
2010/10/05 13:58*DJ Newest 5-Yr JGB Yield Falls to 0.22%, Lowest Since Jun 2003
2010/10/05 13:50DJ Credit Suisse, RZB Buy Bumi's 7.06% Non-Preemptive Rights Shares
JAKARTA -Credit Suisse and RZB Austria have bought Indonesian Bumi Resources' (BUMI.JK) 1.37 billion shares without preemptive rights valued at $360 million, a director at Bumi Resources told Tuesday."Credit Suisse bought 608.62 million shares, while RZB took 760.78 million shares, priced at IDR2,366 each," Dileep Srivastava, director and spokesman of thermal coal producer Bumi Resources said.He said the proceeds from the stake sale will be used to cut the company's debt.Bumi has said that it plans to reduce its debt by $800 million by the end of this year and $1 billion next year to improve its financial performance.
2010/10/05 13:16DJ BOJ Cuts Overnight Call Rate To 0.0%-0.1% Range
TOKYO -In a surprise move, the Bank of Japan decided Tuesday to cut its overnight call rate to a range of 0.0%.1% in an attempt to ease the crippling impact of the surging yen and deflation on the economy.The central bank's policy board said it will keep its essentially zero interest rate policy until the board judges that price developments have stabilized.The BOJ board voted unanimously to cut interest rates.The central bank also decided to establish a temporary fund in the BOJ's balance to buy such financial assets as long-term government bonds, commercial paper, asset-backed commercial paper, and corporate bonds. The BOJ will also buy exchange traded funds and government notes.The size of the fund will total about Y35 trillion.At an emergency policy board meeting in late August, the BOJ decided to offer domestic financial institutions Y10 trillion worth of six-month loans at 0.1%, on top of the Y20 trillion in three-month loans it has been offering over the past few months.
2010/10/05 13:10*DJ BOK Suspected Of Intervening In FX Market To Support Dollar-Traders
2010/10/05 12:58*DJ Japan Fin Min Noda: To Speak About BOJ Easing After Hearing Report From Vice Fin Min
2010/10/05 12:55*DJ Nikkei Stock Average Rises Above 9500 After BOJ Easing Steps
2010/10/05 12:49*DJ BOJ: To Provide Additional Y5 Tln By Buying Financial Assets
2010/10/05 12:48*DJ BOJ: Must Pay Attention To Impact Of Possible Econ Slowdown On Prices
2010/10/05 12:48*DJ BOJ: US Economic Outlook Highly Uncertain
2010/10/05 12:47*DJ BOJ: Decision To Cut Policy Rate Unanimous
2010/10/05 12:47*DJ BOJ: Must Pay Attention To Economic Downside Risk
2010/10/05 12:47*DJ BOJ: Japan Growth Likely To Be Slower Than July Assessment
2010/10/05 12:46*DJ BOJ: To Take Appropriate Action In Timely Manner
2010/10/05 12:46*DJ BOJ: Pace Of Economic Recovery Weakening
2010/10/05 12:46*DJ BOJ: Japan Economy Shows Signs Of Moderate Recovery
2010/10/05 12:46*DJ BOJ: Decided To Pursue Powerful Monetary Easing
2010/10/05 12:45*DJ BOJ: To Buy JGBs, Fincl Assets Such As JGBs, CP, Corp Bonds
2010/10/05 12:45*DJ 10-Year JGB Yield Falls Sharply After BOJ Move
2010/10/05 12:43*DJ BOJ: Will Examine Risk Factors When Keeping Zero-Rate Policy
2010/10/05 12:42*DJ Lead JGB Futures Up Sharply After BOJ Action
2010/10/05 12:41*DJ BOJ: To Keep Virtually Zero-Rate Policy Until Prices Stabilize
2010/10/05 12:40*DJ Yen Falls Vs Dollar, Euro After BOJ Policy Announcement
2010/10/05 12:39*DJ CORRECT: BOJ Sets Overnight Call Rate Range At 0.0% To 0.1%
2010/10/05 12:38*DJ BOJ Leaves Overnight Call Rate Unch At 0.1%
2010/10/05 12:11DJ Japan Econ Min Kaieda: Conveyed Government's Thinking To BOJ
TOKYO -Japan's economy minister Tuesday repeatedly alluded to government expectations for the central bank to announce additional monetary easing measures later in the global day, to help free the nation's economy from a prolonged bout of deflation. 'In Prime Minister Naoto Kan's opening remarks of the Diet session, we have already expressed our thinking. Now it's up to the Bank of Japan to make a decision independently,' Economic and Fiscal Policy Minister Banri Kaieda said at a regular press conference. The BOJ is holding a two-day policy-setting meeting which will end soon. Analysts expect the bank to loosen monetary policy further by, for instance, expanding its fund-provision facilities. Separately, Kaieda expressed regret over the imminent indictment of political heavyweight Ichiro Ozawa of the ruling Democratic Party of Japan. A court-appointed citizen's panel on Monday ordered the forced indictment of Ozawa for allegedly violating the political funds law. The order could end the dramatic career of a powerful politician who has served as kingmaker in Japanese politics for the past two decades, but who has never himself become prime minister. Kaieda said he hopes Ozawa will clear his name in court, and that it is up to him to decide what to do regarding his current position.
2010/10/05 11:36*DJ RBA: Monetary Policy Appropriate For Time Being
2010/10/05 11:36*DJ NZ Dollar Gains To A$0.7683 From A$0.7630 After RBA
2010/10/05 11:34*DJ RBA: CPI Inflation Has Been Running At About 2.75% Over Past Year
2010/10/05 10:51*DJ Hang Seng Index Rises 19 Out Of 23 Trading Sessions
2010/10/05 10:51*DJ Hang Seng Index Rises 0.2% To 22,651.86; Reverses Losses
2010/10/05 10:50DJ Japan Noda: Want BOJ To Support Economy Through Monetary Policy
TOKYO -Japan's finance minister Tuesday urged the Bank of Japan to keep the nation's market awash with cash to support economic growth, putting greater pressure on the central bank ahead of its monetary policy decision."Generally speaking, I want to support the Japanese economy from the monetary policy side, in particular by supplying ample funds," Yoshihiko Noda said at a press conference after a regular Cabinet meeting. Noda's comments come amid expectations that the central bank will announce additional steps later in the day to ease monetary policy amid deepening concerns about the economic outlook.
2010/10/05 10:48DJ Hong Kong HSBC September PMI 52.8 Versus August 52.3
HONG KONG -The HSBC Hong Kong Purchasing Managers Index rose to 52.8 in September from 52.3 in August on continued growth in new orders, indicating a solid strengthening of business conditions, HSBC Holdings PLC said Tuesday A reading above 50 indicates an expansion in manufacturing activity, while a reading below 50 indicates contraction. The HSBC Hong Kong PMI is derived from indexes measuring changes in output, new orders, employment, suppliers' delivery times and stocks of goods purchased. HSBC usually issues the index, which is based on a survey of more than 300 companies in the city, within the first three working days of every month for the previous month's data.
2010/10/05 10:36DJ Sun Hung Kai Properties' Kwong Reorganizes Family Trusts - Report
HONG KONG -Sun Hung Kai Properties Ltd. (0016.HK) Chairwoman Kwong Siu-hing has reorganized the family trusts that control Hong Kong's largest property developer by market capitalization, snubbing her eldest son Walter Kwok in a continuing family feud, the South China Morning Post reported Tuesday.A third of the shareholding of the trusts are now held for the benefit of Walter Kwok's family, not Walter Kwok and his family as had previously been the case, the newspaper reported, citing a statement from the company on behalf of Kwong. The remaining two thirds of the trusts are held by Kwok's younger brothers Raymond and Thomas and their families, the paper reported the statement as saying.The SCMP cited people familiar with the matter as saying Walter Kwok is no longer a direct beneficiary of the trusts, though his children still are.However, Walter Kwok said in a statement he and his family, together with Raymond and Thomas Kwok and their families, are still beneficiaries of the trusts and their shareholding interests haven't changed, the newspaper reported.In 2008, the company's board ousted Walter Kwok as chairman and chief executive after a yearlong family feud, and appointed Thomas and Raymond Kwok along with their mother Kwong to head the company.Newspaper website: http://www.scmp.com
2010/10/05 10:33*DJ Hong Kong HSBC September PMI 52.8 Vs August 52.3
2010/10/05 10:28=DJ FOREX VIEW: Investors Ponder How Much, Not When, On Fed Stimulus
2010/10/05 10:24*DJ Japan Govt Sengoku: Japan's Stance On Disputed Senkaku Remains Intact - Kyodo
2010/10/05 10:20*DJ Japan Govt Sengoku:Kan's Latest Talks With Wen To Be Good For World Economy
2010/10/05 10:16*DJ Japan Econ Min Kaieda: Want Ozawa To Clear Himself Of Charge
2010/10/05 10:15*DJ Japan Econ Min Kaieda: Ozawa Indictment Very Regrettable
2010/10/05 10:12*DJ Japan Econ Min Kaieda: Waiting For BOJ To Make Decision
2010/10/05 10:11*DJ Japan Econ Min Kaieda: Conveyed Govt Thinking To BOJ
2010/10/05 10:11*DJ Japan Econ Min Kaieda: Up To BOJ To Make Decision Independently
2010/10/05 10:07*DJ Japan Noda: Want BOJ To Supply Ample Funds To Support Econ
2010/10/05 10:07*DJ Japan Noda: Want BOJ To Support Econ Through Monetary Policy
2010/10/05 10:03*DJ Japan Noda: Even If G-7 Discusses Forex, May Not Publicize It
2010/10/05 10:01*DJ Japan Noda: May Discuss Recent Intervention At G-7 If Needed
2010/10/05 09:51*DJ Dollar Now At KRW1,132.8 Vs KRW1,127 Earlier, KRW1,122.3 Mon
2010/10/05 09:50*DJ Dollar Briefly Hits KRW1,135.5 On Inspection News
2010/10/05 08:53=DJ Bernanke Issues Stern New Warning On US Budget Gap
2010/10/05 08:03*DJ Lead December JGB Futures Rise To Highest Level Since June 2003
2010/10/05 08:03*DJ Nikkei Stock Average Opens Down 0.5% At 9337.43
2010/10/05 08:02*DJ Lead December JGB Futures Open Up At 143.58 Vs 143.45 Monday
2010/10/05 07:46*DJ Lead Nikkei Futures Open Down 20 Points At 9335 On SGX
2010/10/05 07:35*DJ Bernanke:US Faces Serious Costs, Risks If It Doesn't Tackle Debt
2010/10/05 07:32*DJ Bernanke:Setting A Fiscal Rule May Benefit US Economy
2010/10/05 07:32*DJ Bernanke:US Public Finances On Unsustainable Path In Long Run
2010/10/05 06:35=DJ WORLD FOREX: Euro Falls Back From New High On Old Worries
2010/10/05 05:55DJ EU's Almunia: Bloc Gets Year's Break From State-Aid Limits -FT
pean Union members will be allowed to provide their banking and industrial sectors soft loans and other support for one more year due to the lingering impact of the financial crisis, EU Competition Commissioner Joaquin Almunia tells the Financial Times in an interview posted on the newpaper's website late Monday.But Almunia said the 27-nation bloc's 'normal' rules limiting state aid will be reinstated from the start of 2012.EU officials loosened the rules in late 2008, allowing governments to pump billions of euros in soft loans, state guarantees and direct aid to banks and companies hit by the initial crisis and subsequent credit shortages. Those concessions are to expire at the end of this year.Almunia told the FT that he intends to extend the exceptional regime for the banking sector for another 12 months -- with some technical changes -- but to phase it out over that time.Full story at http://www.ft.com/cms/s/0/50ca56a0-cfdd-11df-bb9e0144feab49a.html
2010/10/05 05:44DJ US Stocks Close Lower Ahead Of Jobs Data, Earnings Reports-2-
2010/10/05 05:40DJ CREDIT MARKETS: CBS, Celgene Among Few Corporate Issuers
2010/10/05 05:30DJ Bernanke: Additional Asset Purchases Could Ease Financial Conditions
2010/10/05 05:26DJ Treasurys Rise On Fed, Stocks; 2-Year Yield Touches Record Low
NEW YORK -Treasury prices rose Monday as some investors bet on the Federal Reserve to step up government-debt purchases to aid the economy. Worries about a potential terror threat in Europe, persistent concerns about sovereign-debt problems in the euro zone and weakness in U.S. stock markets also bolstered demand for relatively safe U.S. government debt. At the peak of the buying, the two-year note's yield touched a record low of 0.399%. 'The continued weakness of the U.S. economy and the expectation of additional easing from the Fed are the catalysts behind the stabilization of yields. Add to that the European issues and you have the precise recipe for low yields,' said Kevin Giddis, president of fixed-income capital markets at Morgan Keegan Inc. in Memphis, Tenn. As of 3:45 p.m. EDT, the benchmark 10-year note was 11/32 higher to yield 2.474%, and the two-year note was 1/32 higher to yield 0.411%. Bond prices move inversely to yields. Some investors have raised bets on any so-called quantitative-easing measures from the Fed as Friday's data showed a decline in a key gauge of the U.S. manufacturing sector. Fed Reserve Bank of New York President William Dudley, who votes on monetary policy, said Friday that the central bank is almost certain to offer fresh support for the economy. Speculation also has increased that the Bank of Japan may provide more monetary stimulus when it finishes the two-day rate policy meeting Tuesday. In the U.K., some policymakers have hinted recently that further supportive measures for the economy may be needed in coming months. So far, Fed policymakers are still split on the timing and form of additional monetary stimulus. Some even opposed the idea, arguing that such policy is unlikely to provide a major boost for the economy. Monday's data added to the debate. U.S. manufactured goods orders fell a bigger-than-forecast 0.5%, yet excluding transportation, factory orders rose 5.1%. Pending home sales increased 4.3%, beating the forecast for a 3.8% gain. John Briggs, U.S. interest rate strategist at RBS Securities Inc. in Stamford, Conn., said the 10-year note's yield is hard to break below 2.46% at the moment. To push bond yields below it, bond investors need to be convinced that 'the size or scope of the Fed's bond purchases is increasing, or the timing is moved up,' he said. Goldman Sachs Group Inc., one of the biggest Treasury-bond bulls on Wall Street, now says the rally has seen its peak and the best trade going forward is to buy stocks, not bonds. Francesco Garzarelli, chief interest-rate strategist at Goldman Sachs in London, said Monday that the benchmark 10-year note's yield has seen its bottom in the 2.45%-to-2.50% area as a lot of the quantitative easing has been priced in. Market participants said Friday's nonfarm payroll report is one of the key factors determining the Fed's move on government-debt purchases, with a weak report likely to increase the odds that the central bank will announce expansion of bond buying in its monetary-policy meeting in November. Should the jobs data beat market forecasts, they are likely to temper wagers on the Fed's outlook, they said. The median forecast is that nonfarm payrolls declined 10,000 in September, after falling 54,000 in August. Private payrolls are projected to have increased 75,000 last month. That is stronger than the 67,000 added in August but still nowhere near enough to bring down the unemployment rate. Consequently, economists expect the September rate to edge up to 9.7% from 9.6%. The 10-year note's yield, a benchmark for consumer and corporate borrowings, touched 2.448% last week. That's the weakest level since this year's trough of 2.418% Aug. 25, which itself is the lowest level since January 2009. Federal Reserve Bank of New York Executive Vice President Brian Sack said Monday that expanding the Fed balance sheet would have a real and positive impact on the U.S. economy, should officials decide to follow that path. 'The evidence suggests that the expansion of the securities portfolio to date has helped to foster more accommodative financial conditions, and further expansion would likely provide additional accommodation,' said Sack, the man responsible for implementing central bank monetary policy goals. He leads the markets group at the regional Fed bank.
2010/10/05 05:14*DJ NZ Dollar Falls After Business Confidence Survey To US$0.7399 Vs US$0.7419 Pre Data
2010/10/05 04:55DJ US Stocks Close Lower Ahead Of Jobs Data, Earnings Reports
2010/10/05 04:32DJ F5 Networks Said To Attract Interest From Tech Giants -Reuters
tworking-services provider F5 Networks Inc. was approached over a year ago about a takeover and remains a potential target for U.S. technology giants, Reuters reports Monday, citing people familiar with discussions on the matter.Seattle-based F5, which delivers applications to data centers, has drawn interest from International Business Machines Corp. , Dell Inc. , Hewlett-Packard Co. , Oracle Corp. , Juniper Networks Inc. and Cisco Systems Inc. , the sources said.The company was approached about the possibility of a takeover over a year ago, one source said. The potential buyer's identity wasn't disclosed and the talks were eventually ended due to valuation issues.F5 has decided not to conduct an auction, another person told Reuters.A spokesman for F5 declined to comment to Reuters.Full story at http://www.reuters.com/article/idUSN0410304920101004
2010/10/05 04:07*DJ Nasdaq Closes Down 26 (1.1%) At 2345; Materials Lead Drop
2010/10/05 04:07DJ PRECIOUS METALS: NY Gold Eases On Dollar, Eyes US Jobs
2010/10/05 04:06*DJ DJIA Closes Down 78 (0.7%) At 10751 As AmEx, Alcoa Sink
2010/10/05 03:57*DJ Japan: No Change In Position On Currency Intervention
2010/10/05 03:53DJ OIL FUTURES: Nymex Crude Slightly Lower On Stronger Dollar
2010/10/05 03:49DJ UK Accounting Board Opens 2nd Probe Of Lehman Auditor -Reuters
The U.K. Accountancy and Actuarial Discipline Board said Monday it has begun a second investigation of Ernst & Young LLP over the firm's auditing of failed U.S. investment bank Lehman Brothers Holdings Inc., Reuters reports.Separately Monday, the AADB also opened a probe into what another Big Four auditor, PriceWaterhouseCoopers, told Britain's Financial Services Authority about how U.S.-based JPMorgan Chase & Co. complied with client asset protection rules. That investigation stems from the FSA's fine on JPMorgan of GBP33.32 million in June for failing to protect billions of dollars of client money from covers the period from 2002 through 2008.In the Ernst & Young probe, the accounting board will examine what the auditing firm told the FSA about how Lehman Brothers' London-based European unit was complying with client asset protection rules for the fiscal year ended Nov. 30, 2007. The board can impose sanctions ranging from a reprimand to unlimited fines and withdrawal of a registration to operate.Ernst & Young confirmed in a statement that it has been approached by the accounting watchdog in relation to reporting on client assets. "We will cooperate fully with the investigation," the firm said.The board had asked Ernst & Young in March to explain how it audited Lehman's books before the Wall Street bank collapsed in September 2008, and it opened a formal investigation in June.That probe followed a report by the examiner in Lehman's U.S. bankruptcy case that said there was enough evidence to support a possible claim that Ernst & Young had been "negligent" and that Lehman could pursue claims against the auditor.Full story at http://www.reuters.com/article/idUSLDE6931T320101004
2010/10/05 03:39*DJ Bernanke:Past Fed Asset Purchases Were Effective In Helping Economy
2010/10/05 03:37*DJ Bernanke:Additional Asset Purchases Could Ease Financial Conditions
2010/10/05 03:12=DJ Goldman, Major Bond Bull, Sees Peak In Treasury Rally
2010/10/05 02:38*DJ OIL FUTURES: Crude Slightly Lower On Stronger Dollar
2010/10/05 02:34*DJ OIL FUTURES: Nymex Crude Settles Down 11c At $81.47/Bbl
2010/10/05 02:22DJ Irish Budget Sept Deficit EUR13.4 Bln Vs EUR20.1 Bln Year Ago
DUBLIN -The Irish government said Monday the budget deficit fell to EUR13.4 billion between January and September compared with EUR20.1 billion in the same period last year as the government grapples to recapitalize its banking sector.The government aims to cut a "minimum" of EUR3 billion in the 2011 budget in an effort to reign in the country's finances and reduce its budget deficit to below 3% of gross domestic product by 2014, but the Central Bank of Ireland said Monday it will need a "larger adjustment than that."Tax revenue totaled EUR23.3 billion from January to September, down from EUR24.4 billion a year ago, 6.5% down on the year. Corporation tax, excise duty and VAT surpluses offsetting the shortfall income tax in light of the collapse in the construction sector.Finance Minister Brian Lenihan said: "There are significant receipts profiled for collection in the last quarter of the year, most notably in relation to income tax and corporation tax, but the current expectation is that taxes overall will end the year in line with the budget target of EUR31 billion."
2010/10/05 02:14*DJ Garzarelli: 10-Year Yield Unlikely To Fall To 2%
2010/10/05 02:13*DJ Goldman's Garzarelli: Buying Treasurys 'Wrong Trade' Going Forward
2010/10/05 02:12*DJ Goldman's Chief Bond Strategist Garzarelli: Stocks Better Value
2010/10/05 02:11*DJ Goldman, Major Bond Bull, Sees Peak In Treasury Rally
2010/10/05 01:54DJ NY Fed's Sack: Balance Sheet Expansion Can Help Economy
NEW YORK -Expanding the Federal Reserve balance sheet would have a real and positive impact on the U.S. economy, should officials decide to follow that path, the man responsible for implementing central bank monetary policy goals said Monday."The evidence suggests that the expansion of the securities portfolio to date has helped to foster more accommodative financial conditions, and further expansion would likely provide additional accommodation," said Federal Reserve Bank of New York Executive Vice President Brian Sack. He leads the markets group at the regional Fed bank.But the official stopped short of saying any decision to act had been made. "Whether the [Federal Open Market Committee] decides to take such a step will be determined by its assessment of whether the benefits of additional policy stimulus outweigh the perceived costs of expanding the balance sheet," Sack said.The official doesn't hold any policy setting role at the Fed. But it is his job to put Fed directives into motion, and it is Sack that is the central bank's closest tie to financial markets. His views carry particular importance as the Fed considers additional sources of support to the economy, at a time when monetary policy has been driven into uncharted waters.At the most recent FOMC meeting, Fed policymakers signaled an increased concern that inflation pressures are tipping toward deflation. Critically, the Fed also said additional action may need to be taken to bolster the economy, opening the door to further action.Central bankers have flagged several possible paths for further action, but renewed asset buying has loomed largest.On Friday, Sack's boss, New York Fed President William Dudley, declared the current economic environment "wholly unsatisfactory" and said "further action is likely to be warranted," although he didn't state which strategy he thought would be best to spur additional economic growth.Not all Fed officials think the Fed needs to go beyond what it's already doing. Dallas Fed President Richard Fisher, who also spoke Friday, came out against additional stimulus, saying government-generated uncertainty was what was holding businesses back right now, noting monetary policy can't do much to fix that situation.Sack's speech - his comments came from text of an address to the 2010 CFA Institute Fixed Income Management Conference in Newport Beach, Calif. - concentrated on balance sheet expansion. His emphasis squared up with the expectations of many economists, who increasingly believe the Fed will start buying fixed-income assets again.Sack was optimistic about the impact the action can have on the economy. "The sluggish outlook for the economy and the risks that surround that outlook have raised the possibility of further monetary policy accommodation," Sack said. "In the current circumstances, there would seem to be room for the Federal Reserve to expand its holdings of Treasury securities without creating difficulties for market functioning," he added.While asset buying is an "imperfect policy tool," Sack said "balance sheet policy can still lower longer-term borrowing costs for many households and businesses, and it adds to household wealth by keeping asset prices higher than they otherwise would be." He countered those, like Fisher, who doubt the further effectiveness of asset purchases, by saying "it seems highly unlikely that the economy is completely insensitive to borrowing costs and wealth, or to other changes in broad financial conditions."Sack warned there are limits to the policy. He noted that asset buying has to be done in fairly large size to move the needle. There's also reason to believe that as yields fall to "extremely low levels," such a policy's effectiveness "would diminish at some point."That said, Sack reckoned that as things now stand, balance sheet expansion "appears to be working, and it is not clear that we have yet reached a point of diminishing effects."The New York Fed official counted as a key part of any renewed balance sheet expansion effort the careful construction of an exit policy. It's a contingency the Fed's ready for, given that reserve draining tools "are already operational, and their capacity to drain reserves will continue to expand," Sack said.Sack also commented on the Fed's decision, made in August, to keep its balance sheet size steady at just over $2 trillion, calling that move a "notable development" that should by itself provide some stimulus for the economy.He said the Fed's reinvestment of proceeds from its mortgage holdings may result in larger Treasury purchases over the near term. Sack said the Fed will likely speed up purchases from $27 billion this month to $30 billion over the next several months, and added the Fed anticipates higher inflows from its mortgage holdings over through 2011.Sack also noted that the Fed could, even under the current policy, change what it buys. "A significant widening of MBS spreads to Treasuries ... could affect policymakers' decisions about which assets to purchase," Sack said.
