Not a lot of news about to account for the move lower in the yen crosses. Well, none that I’ve seen or heard as yet. Usual talk of stops etc ….

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Meanwhile the USD generally has seen some selling across the board, with EUR, GBP, AUD, NZD, CHF, CAD all up from their earlier lows.

Some market chatter about re the stories from earlier about US municipal debt concerns:

U.S. Bank Liquidity Rule Said to Exclude Municipal Bonds

In brief:

  • The latest draft excludes municipal debt from the banks’ lists of easily sellable assets
  • This could reduce banks’ appetite for municipal debt, currently a circa US$3.7 tln market
  • And eventually lead to higher borrowing costs for state and local governments
  • (Note, the changes are not yet finalised)