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PowerShares DB Japanese Government Bond Futures ETN (JGBL)

- NYSEARCA
  • Thu, Jan. 15, 1:29 PM
    • Ridiculous long-term interest rates in Japan have gotten even more so since the central bank began buying massive quantities of government paper, with the 10-year JGB yield falling at last check to 0.25%.
    • The vanishing rate has made it impossible for insurers to generate enough returns to be able pay benefits to policyholders, and Nippon Life is planning a premium hike in February, with others likely following. Fukoku Mutual Life Insurance is contemplating halting sales of lump-sum endowment insurance and other products.
    • Money funds have to deal with the short end of the curve, and rates are negative all the way out to 5 years, where the yield is now 0.00%.
    • Aware of this, the BOJ nevertheless boosted the asset purchase program in October, but some members don't like the idea of killing earnings at financials and giving the impression the QE program is less stimulus and more a scheme enabling the government's deficit spending. "We have caused tremendous trouble for the financial industry," says one BOJ member.
    • ETFs: DXJ, EWJ, NKY, DBJP, EZJ, EWV, JPNL, ITF, JPP, HEWJ, FJP, DXJF,
    • JGB ETFs: JGBS, JGBD, JGBL, JGBT, JGBB
    | 6 Comments
  • Tue, Jan. 6, 7:16 AM
    • The improbable (to most) rally in long-dated U.S. government paper continued overnight, with the 10-year yield dipping down all the way to 1.98%. It's bounced since, and currently stands at 2.00%, off three basis points on the session.
    • It's a global rally, with bonds in the BAML Global Broad Market Sovereign Plus Index having an effective yield of just 1.28% - an all-time low (data is from 1996 on). A sampling: Japan 10-years 0.29%, German 10-years 0.47%, Spain 1.55%, U.K. 1.62%, Italy 1.77%, Australia 2.7%.
    • TLT +0.5%, TBT -1%
    • ETFs: TBT, TLT, TMV, TBF, EDV, TMF, TTT, JGBS, JGBD, BNDX, ZROZ, BWX, SBND, TLH, VGLT, DLBS, UBT, TLO, IGOV, BUNL, JGBL, ITLY, TENZ, LBND, ITLT, JGBT, GGOV, TYBS, DLBL, BUNT, JGBB
    | 5 Comments
  • Dec. 1, 2014, 4:48 AM
    • Moody's Investors Service has downgraded Japan's sovereign debt rating by one notch to A1 from Aa3, citing heightened uncertainty over the achievability of fiscal deficit reduction goals and effectiveness of growth enhancing policy measures.
    • The yen dropped to a seven-year low of 119.14 per dollar immediately following the announcement and is now trading down 0.2% at 118.40.
    • ETFs: JGBS, JGBD, JGBL, JGBT, JGBB
    | 3 Comments
  • Nov. 28, 2014, 2:37 AM
    • Japanese shares gained ground today as a weaker yen and falling oil prices boosted exporters, supporting investor sentiment.
    • The Nikkei benchmark added 1.2% to 17,459.85, climbing over 10% since the BOJ stunned markets with stimulus just one month ago.
    • However, the massive asset-purchase scheme is crushing debt yields, pushing Japanese government bonds to trade at a negative yield for the first time ever today.
    • ETFs: DXJ, EWJ, JGBS, DFJ, JGBD, NKY, DBJP, EZJ, EWV, JPNL, DXJS, SCJ, JSC, ITF, JGBL, JPP, JGBT, HEWJ, FJP, JGBB, QJPN, JPMV, DXJT, DXJR, DXJH, DXJC, DXJF
    | 1 Comment
  • Oct. 31, 2014, 2:24 AM
    • Japan's Nikkei soared to a seven-year high and the yen tumbled to its lowest since early 2008 against the dollar this morning, as the Bank of Japan unexpectedly eased monetary policy due to concerns that a decline in oil prices would weigh on consumer prices and delay a shift in sentiment away from deflation.
    • The BOJ decided to raise its monetary base target to an annual increase of ¥80T yen ($724.5B), from ¥60T-70T.
    • The Nikkei surged 5.1% to 16,462, its highest since November 2007, while the dollar is up 1.5% to ¥110.84, its highest since January 2008.
    • ETFs: DXJ, EWJ, JGBS, DFJ, JGBD, NKY, DBJP, EZJ, EWV, JPNL, DXJS, SCJ, ITF, JSC, JGBL, JPP, JGBT, JPNS, HEWJ, JGBB, FJP, QJPN, JPMV, DXJT, DXJR, DXJH, DXJC, DXJF
    | 21 Comments
  • Oct. 21, 2014, 6:08 AM
    • Key quotes from CAO report:
    • "Industrial production is decreasing recently."
    • "Private consumption appears to be pausing recently."
    • "Business investment shows some weak movements recently, while it is on the increase."
    • "Although weakness remains for the time being, the economy is expected to recover, supported by the effects of the policies, while employment and income situation improve. However, attention should be given to the downside risks of the Japanese economy such as lengthening of the reaction after a last-minute rise in demand and slowing down of overseas economies."
    • ETFs: DXJ, EWJ, FXY, YCS, JGBS, DFJ, JGBD, JYN, NKY, DBJP, EZJ, EWV, YCL, DXJS, SCJ, JPNL, JSC, ITF, JGBL, JPP, JGBT, JPNS, HEWJ, JGBB, FJP, QJPN, JPMV, DXJT, DXJR, DXJH, DXJF, DXJC
    | 1 Comment
  • Oct. 17, 2014, 3:41 AM
    • Asian stocks trade mixed as a 14-year low in U.S. weekly jobless claims and talk of the Fed possibly extending QE helps provide balance to concerns about a possible recession and deflation in Europe, the Ebola scare, China's slowdown, and Japan's floundering economy.
    • The Nikkei closes -1.4% while Japanese bond prices rise, with the two-year yield dropping 3.6 bps to a record low of 0.005%.
    • "We need to see a period of better data from the U.S., and especially Europe, for markets to really calm and volatility to cool," says market strategist Chris Weston.
    • Nymex crude is +0.2% to $82.86 and Brent is +0.1% to $85.89, but the latter is still headed for a fourth consecutive weekly loss.
    • Hong Kong +0.4%, China -0.65%, India +0.25%.
    • ETFs: DXJ, EWJ, FXY, YCS, JGBS, DFJ, JGBD, JYN, NKY, DBJP, EZJ, EWV, YCL, DXJS, SCJ, JPNL, JSC, ITF, JGBL, JPP, JGBT, JPNS, HEWJ, JGBB, FJP, QJPN, JPMV, DXJT, DXJR, DXJH, DXJF, DXJC
    | Comment!
  • Oct. 7, 2014, 3:45 AM
    • Following the Bank of Japan's two-day policy review, the central bank kept its massive monetary stimulus intact but offered a bleaker view on factory output due to a hard-hitting sales tax increase in April.
    • As expected, the BOJ will retain its pledge of increasing base money at an annual pace of ¥60T-70T ($547B-$638B) through purchases of government bonds and risky assets.
    • Policymakers stuck to their view that the economy will resume a moderate recovery and achieve the bank's 2% inflation target next year without more monetary easing.
    • Nikkei closed down 0.7%.
    • ETFs: DXJ, EWJ, FXY, YCS, JGBS, DFJ, JGBD, NKY, JYN, DBJP, EZJ, EWV, YCL, SCJ, DXJS, JPNL, ITF, JSC, JGBL, JPP, JGBT, JPNS, HEWJ, JGBB, FJP, JPMV, QJPN, DXJT, DXJR, DXJH, DXJF, DXJC
    | Comment!
  • Sep. 8, 2014, 4:05 AM
    • Revised figures now show that Japan's real GDP shrank an annualized 7.1% between April and June, topping the 6.8% fall reported two weeks ago, due to a bigger than expected decrease in capital expenditure and decline in consumer spending.
    • The contraction marks the country's biggest slump since the first quarter of 2009, and puts pressure on Prime Minister Shinzo Abe's decision, expected by year-end, on whether to proceed with a scheduled second increase in the sales tax to 10%.
    • ETFs: DXJ, EWJ, FXY, YCS, JGBS, DFJ, JGBD, NKY, JYN, DBJP, EZJ, EWV, YCL, SCJ, DXJS, JPNL, ITF, JSC, JGBL, JPP, JGBT, JPNS, HEWJ, JGBB, FJP, JPMV, QJPN, DXJT, DXJR, DXJH, DXJF, DXJC
    | 2 Comments
  • Sep. 4, 2014, 4:04 AM
    • The Bank of Japan held to its upbeat view on the economy and heavy monetary stimulus this morning, despite the recent stings from a 3% sales tax hike in April.
    • The projection of economic recovery saw consumption benefiting from a tightening job market resulting in higher wages.
    • Leaving its policy framework unchanged, the central bank also pledged to increase base money by 60T-70T yen ($571B-$666B) per year via aggressive asset purchases to reflate its declining economy.
    • ETFs: DXJ, EWJ, FXY, YCS, JGBS, DFJ, JGBD, NKY, JYN, DBJP, EZJ, EWV, YCL, SCJ, DXJS, JPNL, ITF, JSC, JGBL, JPP, JGBT, JPNS, HEWJ, JGBB, FJP, JPMV, QJPN, DXJT, DXJR, DXJH, DXJF, DXJC
    | Comment!
  • Aug. 27, 2014, 2:41 AM
    • Compared to its previous hike, the Japanese government needs to be more cautious regarding its upcoming decision to raise the national sales tax, warns Vice Economy Minister Yasutoshi Nishimura.
    • Nishimura highlights that the sharp decline in consumer spending from the 3% tax hike in April is proving prolonged, and hopes that the Bank of Japan will decide on further monetary easing as appropriate.
    • Meanwhile, Prime Minister Shinzo Abe is to soon decide whether to proceed with the proposed plan of raising the national sales tax even higher, lifting the rate to 10%.
    • ETFs: DXJ, EWJ, FXY, YCS, JGBS, JGBD, DFJ, JYN, NKY, DBJP, EZJ, EWV, YCL, SCJ, DXJS, JPNL, JSC, ITF, JGBL, JPP, JGBT, JPNS, HEWJ, JGBB, FJP, JPMV, QJPN, DXJT, DXJR, DXJH, DXJF, DXJC
    | 1 Comment
  • Aug. 13, 2014, 4:52 AM
    • Japan's economy contracted sharply in the second quarter after a national sales tax in April rose 3% and triggered a sharp decline in consumer spending.
    • Real gross domestic product shrank 6.8% in the three months through June on an annualized basis from the prior quarter.
    • Prime Minister Shinzo Abe will have to address the tax issue again soon. A sales tax increase (which will raise the rate to 10%) has been approved by the Japanese government and will take effect in October 2015.
    • ETFs: DXJ, EWJ, JGBS, JGBD, DFJ, NKY, DBJP, EZJ, EWV, SCJ, DXJS, JPNL, JSC, ITF, JGBL, JPP, JGBT, JPNS, HEWJ, JGBB, FJP, QJPN, JPMV, DXJT, DXJR, DXJH, DXJC, DXJF
    | Comment!
  • May. 21, 2014, 2:31 AM
    • As expected, the Bank of Japan has left its key interest rate at 0.1% and maintained its program of expanding the monetary base by ¥60-70T ($580-680B) a year.
    • Meanwhile, Japan's trade deficit narrowed to ¥844.62B in April from ¥1.63T in March.
    • Export growth strengthened to 5.1% from 1.8% and topped consensus of 4.8%.
    • Imports slowed to +3.4% from +18.1% and exceeded forecasts of +0.8%. The high increase in March was due to a last-minute shopping spree before the sales tax increased on April 1.
    • Exports have disappointed over the past year or so despite the weak yen, prompting fears for Japan's economic recovery and sparking increased speculation that the BOJ might add to its massive asset-buying policy.
    • "We have to wait for exports to recover strongly before we will see a real drop in the trade deficit and that situation is still way out of sight," says economist Yoshiki Shinke.
    • The USD-JPY is -0.15% at ¥101.18, while the Nikkei is -0.2%.
    • ETFs: DXJ, EWJ, FXY, YCS, JGBS, JGBD, DFJ, JYN, NKY, DBJP, EZJ, EWV, YCL, SCJ, DXJS, JPNL, JSC, ITF, JGBL, JPP, JGBT, JPNS, HEWJ, JGBB, FJP, DXJH, DXJT, DXJC, DXJR, DXJF
    | Comment!
  • May. 19, 2014, 3:50 AM
    • Japanese machinery orders, a leading indicator of capital expenditure, have grown at the fastest rate since 1996, surging 19.1% on month in March after slumping 4.6% in February and slaying expectations for a rise of 6%.
    • On year, bookings +16.1% vs +10.8% and consensus of +4.2%.
    • While the jump in orders came before a hike in sales tax on April 1, companies expect bookings to grow 0.4% on quarter in Q2 for the fifth consecutive gain.
    • "The recovery in business investment remains on track," says economist Marcel Thieliant. "The rising level of capacity usage also suggests that companies will continue to invest in machinery and equipment, despite the likely plunge in aggregate demand this quarter after the consumption tax hike."
    • Despite the blow-out data, the Nikkei ends -0.6%, while the USD-JPY is -0.2% at ¥101.36. (PR)
    • ETFs: DXJ, EWJ, FXY, YCS, JGBS, JGBD, DFJ, JYN, NKY, DBJP, EZJ, EWV, YCL, SCJ, DXJS, JPNL, JSC, ITF, JGBL, JPP, JGBT, JPNS, HEWJ, JGBB, FJP, DXJH, DXJT, DXJC, DXJR, DXJF
    | 1 Comment
  • May. 15, 2014, 3:12 AM
    • Japanese GDP growth surged to its fastest level in over two years in Q1, accelerating to an annualized 5.9% from 0.3% in Q4 and breezing past consensus of 4.2%.
    • On quarter, GDP +1.5% vs +0.2% +1%.
    • The economy was boosted by personal consumption soaring an annualized 8.5% as shoppers rushed to make purchases prior to sales tax rising to 8% from 5% on April 1. Businesses lifted capex 4.9%, while they also increased output, capex, jobs and overtime pay.
    • The downside of the strong overall print is that the economy is expected to pull back in Q2.
    • The Nikkei is -0.75% as Sony weighs on sentiment following its poor earnings reports, while the USD-JPY is flat at ¥101.93. (PR)
    • ETFs: DXJ, EWJ, FXY, YCS, JGBS, JGBD, JYN, NKY, DBJP, EZJ, EWV, YCL, JPNL, ITF, JGBL, JPP, JGBT, JPNS, HEWJ, JGBB, FJP
    | 2 Comments
  • May. 2, 2014, 3:53 AM
    • Japan's unemployment rate held steady at 3.6% in March, as expected (PR)
    • Overall household spending jumped 7.2% on year after dropping 2.5% in February and blew past consensus of +1%. The likelihood is that consumers rushed to make purchases before a hike in sales tax to 8% from 5% went into effect on April 1. (PR)
    • The impact of the tax rise may not be as strong as feared, as auto makers and major department-stores yesterday reported smaller-than-expected declines in April sales.
    • The Nikkei is +0.6%, while the USD-JPY is +0.15 at ¥102.48.
    • ETFs: DXJ, EWJ, FXY, YCS, JGBS, JGBD, DFJ, NKY, JYN, DBJP, EZJ, EWV, YCL, SCJ, DXJS, JPNL, JSC, ITF, JGBL, JPP, JGBT, JPNS, JGBB, HEWJ, FJP, DXJH, DXJT, DXJC, DXJR, DXJF
    | Comment!
JGBL vs. ETF Alternatives
JGBL Description
The PowerShares DB Japanese Govt Bond Futures Exchange Traded Notes (Symbol: JGBL) (collectively, the "PowerShares DB JGB Futures ETNs," or the "ETNs") are the first exchange-traded products to provide investors with leveraged or unleveraged exposure to the U.S. dollar value of the returns of a Japanese bond futures index.
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Country: Japan
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