US Treasury semi-annual ccy report just published
- Japan's over-reliance on monetary policy puts their recovery and escape from deflation at risk
- Japan's medium term deficit reduction targets should be flexible, premature fiscal consolidation could hurt recovery
- China has made real progress in ccy policies, but yuan remains "significantly undervalued"
- China appears to have conducted forex sales at end of 2014 and Feb 2015 to prop up the yuan
- Treasury concludes in its semi-annual ccy report that no major US trading partner has manipulated exchange rate
Some words of caution/guidance thrown out there from the bods at the Treasury. A certain irony about warning Europe not to be too dependent on exports given that today's UK trade data showed a marked decline in exports to the US.. Perhaps they accept that they ( the US) can not be relied upon for its import demand
Also
- foreign CB US debt holdings rose $687m to $3.292trln in w-e April 8
- foreign CB holdings of US agency debt fell $258m to $284.51bln w-e April 8
- Fed holdings of treasuries total $ 2.46trln in w-e April 8. Same as prev week
- Fed holdings of agency debt total $36.877 in w-e April 8 as prev week
- Fed discount primary borrowing ave $42mln per day in w-e April 8 vs prev week
- Fed holdings of agency mortgage-backed securities $1.732trln in w-e April 8 as prev week