The Reserve Bank of Australia will make a rate statement on March 2, at 5:30 MT time.
BOJ's Iwata tells there’s no need to purchase US Treasury debt
On Thursday, Bank of Japan Deputy Governor Kikuo Iwata told that there is no need to purchase American Treasury debt now. It’s because Japan’s major financial institution is capable of achieving sufficient monetary easing via purchases of Japanese government bonds.
Governor Kikuo Iwata told parliament that the Bank of Japan can easily achieve its 2% inflation objective and it’s currently looking for an eventual exit from its quantitative easing program without purchasing US Treasury debt.
BOJ official stressed that purchasing US Treasury debt would be undoubtedly interpreted as currency intervention, and it falls under the jurisdiction of the country’s finance ministry.
Iwata actually made the comments when asked by an opposition party lawmaker whether Japan’s major financial institution, having dried up market liquidity via its massive purchases of Japanese government bonds, would shift to other steps such as purchasing US Treasury debt.
Non-farm payrolls, the most awaited economic report, will be out on March 5 at 15:30 MT time.
Stock indices S&P 500 and Nasdaq are falling for seven days in a row. The New Zealand dollar skyrocketed to almost two-years highs. Fed’s Powell held a meeting yesterday and said that the central bank wouldn’t tight its easing policy anytime soon.
The giant chip maker exceeded analysts’ expectations. Even with a global GPU shortage!
OPEC will hold a meeting on March 4, where it should announce its decision on further oil output.
The risk-on is back on the market as investors focus on the projections for a stronger-than-expected economic rebound and the Fed’s pledge to prolong support for the rest of the year.