The week has started with a cautious note...
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.
A new week brings new trading opportunities
On January 23, the ECB announced the interest rate at 0%, unchanged. The ECB President followed with a press conference to give more details. What was the message?