Book him Danno….

LONDON ((MNI) – The Bank Of England said Wednesday it was offering
an unlimited supply of U.S. dollars in a 7-day operation.

The settlement date on the 7-day op was Mar 15 maturing Mar 22 2012.
The Bank said the repo would be at a fixed-rate, with the rate to be set
at 0.62%.

–London Bureau; Tel: +442076341655; email: ukeditorial@marketnews.com

[TOPICS: M$B$$$,M$$BE$]

Had benchmark US 30 year treasury yield at 3.2680 when I jotted down North American closing rates last night.

Opened higher at 3.3033 this morning and have moved up to 3.3356 at writing.

QE3?,  we don’t need no stinkin QE3…….

This move higher in US treasury yields is helping underpin the greenback at the present time, USD/JPY trading at session high 83.34.

• Shirakawa will take 30% sympathy cut in 2012-2013
• Shirakawa’s board will take 20% pay cut in 2012-2013

• Saudi, others remain poised to fill any supply shortfalls “perceived or real”

Bloomberg report.

‘The air in Brussels is thick with tales of pots and kettles as the Netherlands breaks new EU rule book and fiscal pact’

DAX futures up +0.3%, CAC 40 futures up +0.4%.

Financial bookies see FTSE and DAX up as much as +0.6%,  CAC 40 up as much as +0.5%.

Got any ideas you’d like to share with your fellow readers, then here’s where to stick ‘em.

TOKYO (MNI) – The average price of regular gasoline in Japan this
week hit an 11-month high of Y152.6 ($1.83) per liter, or $6.95 per
gallon, surging from Y149.2 in the previous week and marking a fourth
straight weekly rise, data released by the Oil Information Center showed
on Wednesday.

It was the highest level since Y152.7 seen in the week of April
25, 2011.

The average retail price this week rose 2.8% from the Y148.5 per
liter price seen a year earlier, with the pace of year-on-year gains
little changed from a 2.5% rise in the previous week.

The average price of high-octane gasoline stood at Y163.4 per liter
this week, also up sharply from Y160.0 in the previous week. It hit a
record high of Y196.0 on Aug. 4, 2008.

The average price of diesel fuel was at Y132.5 per liter, up from
Y129.8 in the previous week. That compares with the record high of
Y167.4 recorded on Aug. 4, 2008.

The average over-the-counter price of kerosene for heating stood at
Y1,730 per 18 liters this week, up from Y1,705 last week. It posted a
record high of Y2,378 on Aug. 11, 2008.

The average home-delivery kerosene price was at Y1,847 per 18
liters, up from Y1,823 the previous week. It hit a record high of Y2,484
on Aug. 11, 2008.

tokyo@marketnews.com
** Market News International Tokyo Newsroom: 81-3-5403-4835 **

[TOPICS: M$J$$$,M$A$$$,MAJDS$]

TOKYO (MNI) – The Bank of Japan on Wednesday forecast that
industrial production and exports will recover gradually from the recent
slump, backed by brighter prospects for global growth.

“Exports are expected to gradually emerge from the current phase of
flat growth and increase moderately, mainly reflecting a pick-up in the
pace of recovery in overseas economies,” the BOJ said in its monthly
economic report for March

Consumer spending will remain firm on higher job creation while
home building and public spending will increase gradually, thanks to
projects to rebuild earthquake-hit northeastern areas, it said.

“With these developments in demand both at home and abroad,
production is expected to increase moderately,” the BOJ said.

In February, it said: “Exports and production are expected to
remain more or less flat for the time being and increase moderately
thereafter, mainly reflecting a pick-up in the pace of recovery in
overseas economies.”

This month the bank also said the uptrend in production is expected
to continue in the April-June quarter.

The BOJ board on Tuesday voted unanimously to maintain practically
zero interest rates while deciding to expand its temporary lending
programs aimed at shoring up the economy’s growth potential and
supporting small businesses through commercial banks.

The BOJ repeated that Japan’s economic activity “has remained more
or less flat” but added this month that it “has shown some signs of
picking up.”

tokyo@marketnews.com
** Market News International Tokyo Newsroom: 81-3-5403-4833 **

[TOPICS: M$J$$$,M$A$$$,MMJBJ$,MAJDS$]

• Private finance development not keeping up with needs of the economy
• Government should allow private capital into financial sector
• GDP growth goal of 7.5% is necessary to achieve transformation of economy
• Balanced growth in China benefits world economy

(Reuters newswires)

• Australian consumer confidence falls 5%
• Australian Q4 dwelling starts -6.9% Vs -3% expected
• South Korean unemployment jumps sharply to 3.7% from 3.2%
• Press: Greece to badly miss deficit targets
• Japanese business sentiment dropped sharply in Q1
• Chinese Premier says Yuan approaching balanced level
• PBOC continues with recent trend of setting higher USD/CNY mid-point, today at 6.3328
• Nikkei +1.7%, Kospi and Hang Seng +1.2%.
• Gold $1677/oz; Oil $106.50/bbl

Another quiet session only notable for another interim high in the USD/JPY. Regional stocks made strong gains again and the Chinese continue to hint that a widened USD/CNY trading band will happen sooner rather than later.

USD/JPY opened just below 83.00 but the barrier had already been breached during NY trade. The rising Nikkei helped bullish momentum in the Yen crosses and USD/JPY traded to 83.20 where turnover became very heavy and we’ve had quiet consolidation since then. Ranges: 82.84/83.21

AUD/USD fell after the poor consumer confidence data but demand for AUD/JPY in particular has helped outweigh the selling. Up and down but ultimately no change on the session, range 1.0507/55

EUR/USD has had a quiet 35 pip range with very little interest being shown in the interbank market. The generally stronger USD weighed somewhat on EUR/USD but EUR/JPY and EUR/CHF buying helped outweigh this. Range: 1.3055/90

Cable 1.5675/1.5713; EUR/CHF 1.2070/85

TOKYO (MNI) – Japanese industrial production rose a revised 1.9% on
the month in January, slightly weaker than the preliminary reading of
+2.0%, data from the Ministry of Economy, Trade and Industry showed on
Wednesday.

But industrial output still posted the second m/m rise in a row
after jumping 3.8% in December, as car and electronics makers continued
playing catchup following last year’s supply chain breakdown in
flood-hit Thailand.

Last month, METI’s survey of firms showed that production is
expected to increase 1.7% m/m in February and a further 1.7% in March.

Compared with the year earlier level, production in January fell
1.3%, revised down from the preliminary reading of -1.2%.

Other details from the latest data:

Shipments: Jan revised -0.9% m/m (preliminary -0.7%) vs. Dec +4.6%.

Inventories: Jan revised +3.0% m/m (preliminary +3.1%) vs. Dec
-2.9%.

The inventory-to-shipments ratio: Jan revised +1.4% (preliminary
+1.2%) vs. Dec -3.7%.

The capacity utilization ratio: Jan +3.4% m/m vs. Dec +3.1%.

tokyo@marketnews.com
** Market News International Tokyo Newsroom: 81-3-5403-4835

[TOPICS: M$J$$$,M$A$$$,MAJDS$]

USD/JPY is trading quietly near 83.10 and AUD/USD has recovered most of its earlier losses. Another session of tight 30/40 pip ranges but the USD/JPY up-trend does remain solid after new interim highs were reached earlier.

• China is looking to step up FX reforms and allow the Yuan to float more widely
• China will abide by Doha trade principles and opposes protectionism

(Reuters newswires)

Sounds like yet more hints that a widening of the USD/CNY trading band might soon be happening.

• Bids reported at 1.5670 and again at 1.5640

Bit of a battle taking place in the interbank market at 83.20, with plenty of turnover to keep the brokers happy. Dealers report ‘good’ names both sides so that doesn’t really help.

There is obviously someone or something holding this pair back just below 109.00, as it’s had a number of days where it has stalled near there. Nevertheless the bulls look to be taking over control and the trend base has been roughly set by the 21-day MA, currently at 107.00. A clean break above 109.00 should bring the February high at 110.00 quickly into focus.