Yen bears retreat as equities slide and JGB auction demand not as expected

Yen selling frenzy, post Bank of Japan (BOJ) negative rates fading as equities reverse course. Yen remains well bid, trading at 120.7 per Dollar, however traded as high as 120.35 per Dollar today.

• India's benchmark stock index closed down more than 1%.
• Australian index future is down similar 1%.
• Nikkei future is relatively flat, just down -0.2%, probably due to BOJ actions.
• S&P 500 future is down close to 0.75%.
• Europe is down more sharply. DAX is down 1.5%, while EuroStxx is down -1.8%.
• FTSE is down similar 1.7%.

Global equity selloffs, probably leading to some Yen. However today's selloff is lacking typical risk aversion characteristics. While Yen may be being influenced by BOJ actions, other safe havens are not much in demand.

• Gold is down 0.25%, while Silver is down 0.6%.

Blame for the selloff can be attributed to oil to some extent, which has started sliding again.

• WTI is down 3.3%, trading at $30.5/barrel.
• Brent is down 2.8%, trading at $33.1/barrel.

Another key concern is despite BOJ's actions last Friday, overnight Auction of 10 year bond yielded less demand than expected. Lowest offer received at 102.03, while median expectations were for 102.16.

10 year JGB yield has also reversed course. It is now back above 0.07% after trading as low as 0.029%.