Abe Will Not Change Course After Moody’s Downgrade

Prime Minister Shinzo Abe said Tuesday his government’s economic policy management will not be affected by a rating downgrade by Moody’s Investors Service on Japanese government bonds the previous day.

Speaking on television, Abe said financial markets reacted calmly to Moody’s decision to lower its credit rating on JGBs by one notch to A1 from Aa3.

In late interdealer trading in cash JGBs on Tuesday, the yield on the key 335th 10-year issue with a 0.5 percent coupon stood at 0.415 percent, down from 0.430 percent late Monday. On the Tokyo Stock Exchange, the benchmark 225-issue Nikkei average hit a new seven-year closing high.

Abe said he believes international trust in the national economy remains high, adding his economic policy mix, known as Abenomics, is supported abroad.Speech

via Japan News

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza