We can observe very strong movements on the global bond markets – what’s interesting it is not entirely clear what caused them. Analysts explain, among other positive signs in the movements of GDP and inflation. Also technical factors can not be excluded

What interesting happened on Thursday?

Before we go, however, to analyse the debt securities market, let’s examine the most important macro events that accompanied us over the Thursday session.

Main Thursday events:

  • The morning market overview – New Zealand trade balance and Kuroda at the microphone
  • On the Warsaw Stock Exchange debut of structured certificates of ING Turbo on GBP /USD and USD / JPY
  • ECB ready to act – longer QE?
  • British GDP better than expected. How reacted GBP?
  • DB results for the third quarter of 2016. – Stocks bounced
  • September durable goods below expectations
  • Jobless Claims at 258,000, less than expected
  • US real estate index up in September

What drives increases in the bond market?

As observes ForexLive, Thursday’s session brings to market of the world’s bond strong upward movements. Have a look at the following list:

  • German 10-year bonds: doubled from 0.18% to 0.09% (at the beginning of the week were valued even at 0%)
  • US 10-year bonds 12 basis points to 1.275%
  • Canadian 10-year bonds: 8 basis points to 1.24%
  • Japanese 10-year bonds: 1 basis point to 0.50%
  • Australian 10-year bonds: 7 basis points to 2.33%

The values of bonds and their percentage changes can be followed here,

Thursday’s session brought a stronger-than-expected British GDP. Earlier, we heard the statement made by Haruhiko Kuroda from the Bank of Japan, which claimed that the interest rate on long-term debt should grow even when interest rates will remain on unchanged levels. In fact, these are the only macroeconomic data, which could influence in increases in debt.

Looking from the technical side,on the chart of German 10-year-olds we see levels higher than June and September highs:27-10-2016-10-41-23-am-768x466

In the above statement the least were Japanese bonds. For foreign investors, should this be a signal to the movements of the Japanese yen pairs, which are already beginning to be realized. Among other , USD / JPY overcomes the barrier of 105.00:usdjpyh1-27-102-696x3092x

The Japanese yen also lost against the euro, stopping at this moment, at the height of the second pivot point resistance:

eurjpyh1-27-10-696x3092x
EURJPY H1 – strong growth during the Thursday session after the test daily Pivot 113,796. At this point, the price stopped under R2 PP 114,730. In this place also extends 61.8% abolition of the declines in the last three weeks.

Economic calendar for Friday

During the last trading session of the week, investors should pay attention to the following macroeconomic publications:

1:30 – Japanese CPI
3:00 – PPI Australia
14:00 – Germany CPI
14:30 – US GDP and PCE indexes
16:00 – US consumer sentiment index by the University of Michigan

After 16:00 we will be able to start so well-deserved weekend.

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