BYD intensifies price war / Merz to target US techs if necessary / UKR : no range limits / JGB yields down! #JPY

Stéphan
May 27
3 min read

Markets : JGB yields in long-end drop 10bps (see below-'considering less long-bond issuing), NVDA earnings after the bell on Wed and FOMC minutes on Thursday, OPEC+ meeting, TKY CPI and U.S PCE Friday, overall markets need to breathe, relatively well established ranges in rates, equity and FX, awaiting for Bessent & Trump to hear if they go full on with their big beautiful bill (in which case usd, bonds, eq likely to struggle on 'higher debt worries', for NOW, #JPY #JGB news lifts USD in short-term (short-covering), and finally something that should get a lot of attention on both sides : Germany, France, UK, and US lift ALL range limits on Ukraine’s attacks inside Russia — German Chancellor Merz
Hamas agrees to a Gaza ceasefire, sources say; US and Israel reject offer
Germany’s Merz says US Tech perks could be target in Trade War - he said that the bloc would need to protect its interests and pointed to the US surplus in services trade with the EU. “At the moment, we strongly protect US tech companies — also on taxes,” Merz said Monday in Berlin at the WDR Europaforum conference. “That can be changed, but I don’t want to escalate this conflict. I want to solve it together.”
Extraordinary speech on China by Indonesian president Prabowo/Thread
Bessent : The Trump Administration is going big on digital assets >>> YES, of course they do, they need to engineer a $2trn or so of extra demand for treasuries via stable coins...which in many ways means that they are anything but stable...
Top Japan Insurers See $60 Billion in Unrealized Bond Losses
Fed quietly bought $43,6bn in UST's in alleged ‘Stealth QE’ operation after China abruptly dumps billions in bonds
EU plans sweeping stress test of non-banks - Move likely to raise concerns among hedge funds and private credit groups of greater regulatory scrutiny
Japan’s MOF Is Said to Sound Out Market on Bond Sale Amounts - Japanese super-long bond yields dropped after the finance ministry sent a questionnaire to market participants regarding appropriate issuance amounts for government bonds. The move aims to regain stability in the market after a sale of 20-year debt last week got the weakest demand in more than a decade. The 20-year yield dropped 13.5 basis points to 2.37%, and thirty- and 40-year rates also declined after reaching their highest levels since inception last week #JGB
China’s airlines raise alarm as travellers ditch planes for bullet trains >> give folks great train service, and they switch off planes..who could have possible guessed that...