The Day Ahead: G7 Tackles Yen. Stocks Rally. Bonds Sell
ByPosted To: MBS Commentary
An agreement among the G7 group of finance ministers and central bankers to intervene against the rising yen helped calm global markets last night. “Each of the G7 members will sell yen as their markets open Friday,” said economists at BMO Capital Markets, who say the yen has already tumbled 3% as a result. “This is the first currency intervention of the G7 since 2000 when it moved to support the euro, but it’s not a surprise” said MND’s Adam Quinones. “We’ve all gotten used to the government intervening in financial markets.” Stock futures rallied on the news and Treasuries sold off, but optimism was tempered as tensions intensified in Libya and Japan. Reuters reports Japanese engineers conceded on Friday that burying a crippled nuclear plant in sand and concrete may be a last resort to prevent…(read more)