Limit Up! 28th May 2025

Ian Reynolds May 27, 2025

Podcasts | Daily LinkedIn | Weekly LinkedIn | Check out the website

Overnight

Economic Indicators Released Overnight

After's Monday US and UK holidays, markets were back and positive. Adding to the party was the Conference Boards Consumer Confidence reading of 98.0, a big rise since April. Durable goods were lower but confused by the tariffs story.

King Charles, opening Canada's parliament, the first time in 70 years that Britain's monarch has done so, delivered the goods.

King says 'strong and free' Canada is a force for good in historic throne speech [CBC]

In China, the PBOC, centralising lending back into a few big state banks, told them to use more CNY for cross-border transactions.

But the negative news is the further disintegration of the Japanese bond market ahead of today's 40 year bond auction

Four of Japan’s biggest life insurers reported about $60 billion of combined unrealised losses on their domestic bond holdings for the latest fiscal year. BOJ Governor Kazuo Ueda has refrained from making any indications that he’s prepared to take action in the bond market.
Japanese Bond Yields Decline Ahead of Test at 40-Year Auction [Bloomberg]

Japanese Bonds Surge on Bets That Government May Tweak Issuance [Bloomberg]

BOJ’s Ueda flags underlying inflation risks, sees more potential rate hikes [investing.com]

The USD and US stock markets continued the party in any case.

US Equities

Breaking

Japan to spend $6.3 billion for tariff relief package, Kyodo reports [MSN]

EU countries push for swift trade deal with Donald Trump [FT]

Tariff shock to be ‘stagflationary’, no rate moves before Sept- Fed’s Kashkari [investing.com]

Bitcoin

BTC looking for another big move, one way or another. Would suggest that external events may break the status quo at the all time high.

BITCOIN / USD Daily

Commodities

Oil teetering on the brink.

SPOT BRENT Daily

Bonds

Massive volatility in long date JGBs currently being whipsawed by higher CPI and narrative that MoF may restrict longer end for bills a la Yellen. All of which is very bad news. Last 2 weeks chart looks more like a memecoin.

Japan 30 Year Government Bond Yield Daily