Asian Markets Wobble as AI Fears Rattle Stocks, Oil and Gold Rebound 
Bank of Japan Likely to Delay Rate Hike Until July as Economists Eye 1% by September 
China Holds Loan Prime Rates Steady in January as Market Expectations Align 
Australia’s December Trade Surplus Expands but Falls Short of Expectations 
Stephen Miran Resigns as White House Economic Adviser Amid Federal Reserve Tenure 
ECB’s Cipollone Backs Digital Euro as Europe Pushes for Payment System Independence 
Bank of England Expected to Hold Interest Rates at 3.75% as Inflation Remains Elevated 
Paul Atkins Emphasizes Global Regulatory Cooperation at Fintech Conference 
RBA Raises Interest Rates by 25 Basis Points as Inflation Pressures Persist 
Asian Currencies Trade Sideways as Dollar Stabilizes, Yen Weakens Ahead of Japan Election 
The Bank of England’s (BoE) comprehensive package, especially the introduction of a £10 billion corporate bond purchases has triggered a mega surge in bond issuance from UK corporates as the companies join in to avail the benefits of lower yields. After the announcing of the package, the market saw biggest surge in issuance in more than three years.
On the week, the BoE eased policy, corporate bonds worth of £1.78 billion were issued and in last week issuance reached £1.65 billion. The amounts of bonds issued in last two weeks surpass the total amount issued in three months prior to that. The year to date volume is already more than 50 percent higher than that of last year.
After the inflation data for July got released yesterday the bonds scaled back their gains and yields rose, however, that may prove to be only temporary as the central bank likely to allow temporary overshooting of exchange rate-driven inflation. If the growth and the employment weaken the central bank is likely to respond again. Some economists are forecasting another rate cut in November.
