791 and the rate to 10 years by 4 points to 1848

Monetary policy decisions should be taken early and changes must be made by small increases. "The words of the Governor of the Bank of the Japan (BoJ), Toshihiko Fukui, surprised financial markets yesterday. While it is plunged into the turmoil of the Murakami Fund (of which the Manager is suspected of insider trading), he was evacuated to a single word the uncertainties surrounding monetary policy in the archipelago.

No, it won't. The central banker has renewed its "sincere apologies". And, as to make amends, he promised to give up 30 of his monthly salary of 2 million yen (70,000 euros) for six months. It also plans to give some 22 million yen, the equivalent of its investment in the Fund and its earnings to charitable organizations.

The record closed, stakeholders have immediately reacted to the use of the term "soon" in the speech of the Governor as regards more specifically the future monetary policy. The Governor suggested yesterday that sustainably keep rates at very low levels could exacerbate economic fluctuations.

Avoid overheating

"If the economy develops as we look forward to it, edit rate guidelines on the basis of the price conditions and economic will to avoid overheating of the economy, minimize the fluctuations in the cycle and will lead to sustainable growth", said Toshihiko Fukui. And added: "We are entering a critical period monetary policy."

This speech helped the yen weakened to a few colors. The euro has lost 0.24 at 144,58 Yen yesterday (after a low point in 144,20 in the meeting) and the dollar gave 0.37 to 114,88 yen. On the front of the State loans, the performance of the Japanese titles is clearly stretched. 2-Year rate rose 5 basis points to 0.791 and the rate to 10 years by 4 points to 1,848. Of course, as he himself noted at a second Conference, Tishihiko Fukui did not say when precisely he intended to abandon the policy of the zero rate. But his words were enough to revive the anticipation of a first recovery as early as next month.

Stability of the financial system

The minutes of previous meetings of monetary policy on the archipelago have testified that the risk of a decline in prices appeared less today in the eyes of members of the BoJ. "Even if economic activity is less robust and lower than expected inflation rate, the risk that the economy falls into a vicious circle of falling prices and deterioration of the economic activity has become weaker since returned to the financial system stability and the economy has reduced its excess capacity of production, employment and debt"commented on some of the members. In this context, stakeholders will focus on the next release of the quarterly survey of the BoJ (the Tankan), July 4. And in particular on any revisions concerning expenses of investment.

The day also saw the publication of new housing starts in the United States. The figure was expected then that stakeholders fear a slowdown in the US economy. 1,957 Million units, starts finally surpassed the average of economists, established wait at 1,867 million. In fact, they have caused a slight tension on the bond market. The rate of the loan of American State for 2 years, which was backing up in the first part of session, reversed its progression to 5.19 later in the day, against 5.17 Monday evening.