Financial Markets Update 5 December 2025
Japan in the limelight
News Overnight
Initial Jobless Claims fell sharply but it could be a outlier as it was a holiday week last week. Continuing Jobless Claims remained at it’s elevated level. No Nonfarm Payroll tonight to clarify.
Markets were pretty quiet, with BTC, Gold and Silver dropping as traders square up for next week.
Breaking
Japan’s Strongest 30-Year Bond Sale Since 2019 Eases BOJ Jitters [Bloomberg]
Treasury debt manager hit by staff exodus, corruption claims [AFR]
Americans head to dollar stores as affordability crunch pinches consumers [FT]
China state-owned banks soak up dollars to slow yuan gains, sources say [Reuters]
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USD/YEN Update 5 December 2025
Yields have surged but with that there has been good 10 year and 30 year auctions. The BoJ meets on 19 December and they’re preparing us for a rate hike. Japanese inflation is above target but under control, yields are still too low though and that’s why short rates are going up. Seems reasonable to me.
Dow Jones Update 5 December 2025
Equity markets are at an inflection point and is clearest most on the DJIA. Nothing is going to happen until Mr Powell opens his mouth on Wednesday, unless hold or 50bps cut, both of which seem highly unlikely.
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Oil Update 5 December 2025
We squared up our short position, with a profit, when OPEC decided to change direction and stick with the current output levels. We’re still bearish on the US economy and particularly the Chinese economy.
Japan 10 Year Yield Update 5 December 2025
Japanese 10 year yields are back to levels last seen in 2007, per the montly chart above. And the increase in yield is accelerating.
Economic Indicators Today
