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Over the last few days, there's been a good bit of media reporting on the Japanese Yen and I only gave those headlines a cursory look. Maybe I should have been paying more attention...



The dollar surged to a fresh 34-year high against the yen on Friday, bolstered in part by U.S. inflation data that showed no signs of easing, coming in line with forecasts and affirming expectations that the Federal Reserve will likely delay cutting interest rates to later this year.

The dollar's peak against the yen came after the Bank of Japan kept interest rates steady at its end of its two-day policy meeting, although it flagged future rate hikes. With the yen at multi-decade lows, market participants were on alert for possible intervention from Japan to prop up its currency.
...
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https://www.msn.com/en-us/money/mar...dollar-gains-after-inflation-data/ar-AA1nJKaX

The BoJ had announced a while back that were going to end NIRP (negative interest rate policy). Looks like raising rates is causing some of the "Yen carry trade" to unwind - or at least not to encourage sustained levels.
 
Also, this seems like a HUGE deal, both for Crypto and the stock markets. So I'll just leave it here. I don't know what the percentage was before or how much leverage they used on crypto assets. The DTC is a criminal organization though, so keep that in mind.

 
Voodoo said:
Also, this seems like a HUGE deal, both for Crypto and the stock markets. So I'll just leave it here. I don't know what the percentage was before or how much leverage they used on crypto assets. The DTC is a criminal organization though, so keep that in mind.

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How is it the DTCC has gained 'control' over crypto??
 
The DTCC OWNS everything, just about. If you have it "something" with a broker the DTCC owns it. Think of them as the FED of banks for stocks/bonds/whatever else brokers are doing. In my mind, this is kinda like the Comex changing gold/silver margin requirements.

The DTC does Not own/control cryptos that you have in a hard wallet or stocks that you have the certificate or supposedly DRS to your name with a transfer agent.
 
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Voodoo said:
The DTCC OWNS everything, just about. If you have it "something" with a broker the DTCC owns it. Think of them as the FED of banks for stocks/bonds/whatever else brokers are doing. In my mind, this is kinda like the Comex changing gold/silver margin requirements.

The DTC does Not own/control cryptos that you have in a hard wallet or stocks that you have the certificate or supposedly DRS to your name with a transfer agent.
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I wonder if that was the whole purpose of getting a BTC ETF on Wall St?
 
Voodoo said:
Also, this seems like a HUGE deal, both for Crypto and the stock markets. So I'll just leave it here. I don't know what the percentage was before or how much leverage they used on crypto assets. The DTC is a criminal organization though, so keep that in mind.

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Bill's Holter's Commentary:
"Here is the full notification from DTC. Are they trying to create a margin call?"


Effective April 30, 2024, as part of the annual renewal of the line-of-credit facility, DTC will implement the following
changes to modify collateral value for certain securities, which may affect the value of positions applied to the
Collateral Monitor:
1. Collateral valuation for corporate notes or bonds rated B1 to B3, will be updated to use a haircut value of​
70%, up from 50%.​
​
2. No collateral value will be given for any ETF or other investment vehicle that includes Bitcoin or any other​
cryptocurrency as an underlying investment, hence will be subject to a 100% haircut.​

As done previously and as explained in greater detail in Appendix A, below, DTC will apply a 100% haircut and
assign no collateral value to securities that are issued by an affiliate of any lender listed in Table 1 of Appendix A
(i.e., lender banks to the joint DTC and NSCC committed 364-day line-of-credit facility dated April 30, 2024).

As a reminder, to help manage intraday transaction blockages due to this risk management control, Participants
can (i) designate additional securities as collateral (subject to the applicable collateral haircut listed in Table 2 of
Appendix A, below), (ii) process delivery-versus-payment transactions that will generate intraday credits, or (iii)
submit settlement progress payments via Fedwire®. Participants can monitor their Collateral Monitor balance via
the Risk Management Controls Inquiry link in the Cash and Balances tab in the Settlement Web.

For more information related to collateral processing at DTC, please see DTC’s Settlement Service Guide.1

PDF here:
 
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Morning Bid: Yen slips anew with Amazon due, Treasury plans irk​

April 30, 2024

A look at the day ahead in U.S. and global markets from Mike Dolan

World markets stalled on Tuesday as another heavy earnings week for megacap stocks cranked up, with renewed slippage in Japan's yen and U.S. Treasuries eyed closely in the background.

Major macro market moves are likely in check for now as the Federal Reserve starts its latest two day policy meeting - with Wall Street also eyeing first quarter results from two more top ten world caps Amazon and Eli Lilly.

More:

 
pmbug said:
... the "Yen carry trade" to unwind ...
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3820dbb4-fdaa-4108-a9d5-83baceb05653_text.gif
 
Unrolled Kobeisi Letter above
threadreaderapp.com

Thread by @KobeissiLetter on Thread Reader App

@KobeissiLetter: You can't make this up: New evidence suggests the Bank of Japan INTERVENED on Monday when the Japanese Yen crashed. At 9:30 PM ET on Sunday night, the Japanese Yen weakened to 160 against the...…
threadreaderapp.com threadreaderapp.com
 
🇿🇦 South Africa’s Harmony increases its projected gold production this year by about 5%

The main factor contributing to this rise will be the greater quality of metals, resulting in increased profitability per ton processed and decreased costs per ounce produced.

In an operational update, the company said it anticipates (https://en.sputniknews.africa/20240...oduction-this-year-by-about-5-1066318701.html) its total gold output for the year to reach 1.55 million ounces. This is an increase over the earlier projection of between 1.38 million and 1.48 million ounces.

Moreover, Harmony Gold achieved a production of 1.18 million ounces in the nine-month period ending on March 31, representing a 10% growth compared to the corresponding period in 2023.

Gold revenue also increased by 26%, and group operating free cash flow increased by 171% to about $470 million, which was driven by higher grades recovered from several of the company's mines.

Subscribe to @sputnik_africa

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The U.S. economy added fewer jobs than expected in April while the unemployment rate rose, lifting hopes that the Federal Reserve will be able to cut interest rates in the coming months.

Nonfarm payrolls increased by 175,000 on the month, below the 240,000 estimate from the Dow Jones consensus, the Labor Department's Bureau of Labor Statistics reported Friday. The unemployment rate ticked higher to 3.9% against expectations it would hold steady at 3.8%.
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Markets moving on hopium. They will likely reverse when the Fed provides guidance that they need more data.
 
We are led to converse about US Govt being broke because of expenses versus income (taxes). What these conversations usually leave out is the idea that the US Govt is far from being broke because it holds plenty of assets (a truly astonishing amount of assets) - more than enough to pay off the national debt. They are rich with assets. It is just not allowed in polite conversation to mention that they could sell some of these assets instead of taxing us slave-mules into oblivion and/or tax us via inflation.

[Think balance sheet.]
 
The metals, including the miners, are sniffing something out. I have been expecting earning to be good for the miners with these higher prices. Many are now up over 100% in the last couple months.
Are they sniffing out a recession and possible rate cuts? Seems like when the fed does cut rates it's because of a problem in the economy which is usually an indication that a recession is coming. Initially markets move up on the news but then turn lower. At the same time metals have gone higher on rate cut news as investors head for safety.
I think we all know the fed is fked. Cut rates now and inflation is going higher. Don't cut rates and crash the entire system. As was mentioned earlier the yen trade is concerning. Japan central bank has to support the yen and only way to do that is sell UST's. Sell the UST's and rates going higher. rates going higher on 34+ trillion of US debt means larger interest payments for US. I think it also means more money moves into UST's as people look for that safe return. Why risk money in the stock market when you can earn 5+% in savings and UST's?
So the money heads for safety in metals and UST's/ US dollar. Dollar gets even stronger and destroys international currencies around the planet.
I don't know if I understand this well enough to trade it. Safe haven seems to be gold though. Physical at that.
 
...
Friday, the University of Michigan said the preliminary reading of its Consumer Sentiment Index fell to 67.4 from April’s reading of 77.2. The data was weaker than expected as consensus forecasts called for a reading of around 76.3.

Sentiment has dropped to a five-month low.
...
Along with the disappointing sentiment, the report also noted that consumers see inflation rising 3.5% by this time next year, up sharply from 3.2% reported last month.
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