Image source: The Motley Fool. PS Business Parks Inc (NYSE: PSB)Q4 2020 Earnings CallFeb 23, 2021, 1:00 p.m. ETContents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: OperatorGood afternoon, and welcome to the PS Business Parks Fourth Quarter and Full Year 2020 Earnings Results Conference Call and Webcast.
- FX Empire
It’s a bullish start to the day for Bitcoin and the broader market. A Bitcoin move through to $47,000 levels would support a breakout day for the majors.
(Bloomberg) -- The freeze-driven shuttering of core sections of the U.S. refining system isn’t all good news for rival plants in Europe. Down at the bottom of the barrel, losses are deepening.While U.S. shutdowns mean less competition for European refiners in supplying gasoline and diesel on both sides of the Atlantic, they also remove an important export market for the remnants of the refining process -- products known as fuel oil.With much of the U.S. Gulf Coast in recovery mode after February’s extreme weather, many of those barrels need a new home. That is acting as a drag on margins for those refineries that churn out relatively large amounts of higher-sulfur fuel oil.“The U.S. is suddenly not taking so many cargoes a month transatlantic,” said Hedi Grati, a director at IHS Markit. “It needs to find another outlet.”Gulf Coast refineries regularly import bottom-of-the-barrel feedstocks from Europe and Russia, turning them into higher-value fuels like diesel and gasoline. But with so many outages on the Gulf Coast, there’s little appetite from that region for such cargoes at the moment.As a result, exports toward the U.S. from Europe and Russia of dirty petroleum product -- including various grades of mostly high-sulfur fuel oil and vacuum gasoil -- have plunged. They sank by 136,000 barrels a day, or about 40%, during the period February 1-23 compared with January, and by roughly 50% year-on-year, according to tanker analytics firm Kpler. The figures don’t include dirty shipments known to be low-sulfur.Lack of DemandThat’s led to diminished demand for European barrels, which is helping to push down the value of high-sulfur fuel oil relative to crude oil, known as the crack spread. In northwest Europe, the measure recently fell to its lowest since May.“High-sulfur fuel oil cracks in Europe -- but also in the U.S. Gulf Coast and Singapore -- are under pressure due to lower seasonal utility demand in the Middle East and refinery outages in the United States, drawing less fuel oil as heavy feedstock,” Grati said.With Gulf Coast refiners beginning to resume operations, the absence of U.S. demand for bottom-of-the-barrel material might prove short-lived. But there is another bearish factor on the horizon: OPEC+ may start ramping production back up, and its output of heavier, sulfurous crudes is likely to result in more high-sulfur fuel oil being made.“You would essentially be replacing light, sweet, U.S. crude with primarily medium sours, which have a much higher yield of HSFO,” said Chris Barber, principal of ESAI Energy. That “should increase HSFO supply,” he said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
- Simply Wall St.
A look at the shareholders of Gascoyne Resources Limited ( ASX:GCY ) can tell us which group is most powerful...
Brazos Electric Power Cooperative Inc is one of dozens of electricity providers facing enormous charges stemming from a severe cold snap last month. The fallout threatens utilities and power marketers who collectively face billions of dollars in blackout-related charges, executives said. Brazos and others that committed to provide power to the grid and could not, were required to buy replacement power at high rates and cover other firms' unpaid fees.
As the market nosedived last year, my older brother advised me to sell. I lost $80,000. How can I ever forgive him?
This time last year, when the market was nosediving, my older brother advised me to get out of the market, and go to cash to conserve my assets. The Moneyist: ‘Warren Buffett and Harry Potter couldn’t get those two retired early’: Our spendthrift neighbors said our adviser was ‘lousy.’
- Simply Wall St.
A look at the shareholders of CSW Industrials, Inc. ( NASDAQ:CSWI ) can tell us which group is most powerful. Generally...
Hyatt Hotels Corp called symbols of hate "abhorrent" on Sunday after the design of a stage at the Conservative Political Action Conference at one of its hotels drew comparisons to a Norse rune used by Nazis during World War Two. High-profile Republicans including former President Donald Trump were attending the four-day event in Orlando, Florida, as conflict rages between Trump allies and establishment politicians trying to distance the party from him. A photo of the CPAC stage went viral on social media on Saturday, with thousands of Twitter users sharing posts comparing its distinctive design to an othala rune, one of many ancient European symbols that Nazis adopted to "reconstruct a mythic 'Aryan' past," according to the Anti-Defamation League.
(Bloomberg) -- Israel accused Iran of attacking one of its cargo ships in the Gulf of Oman last week, as tensions mount over the U.S.’s desire to rejoin a nuclear deal with Tehran.“It was indeed an act by Iran, that’s clear,” Israeli Prime Minister Benjamin Netanyahu said Monday in an interview with Kan radio, a local station. Iran “is Israel’s greatest enemy and we are striking it across the region.”The Israeli-owned car carrier, called the Helios Ray, was struck by an explosion while sailing 100 kilometers (62 miles) off the coast of Oman either on Feb. 25 or the early hours of Feb. 26. None of its crew was hurt and the vessel is now docked in Dubai for repairs.“We categorically reject” Israel’s accusation, a spokesman for the Iranian foreign ministry, Saeed Khatibzadeh, said in a press conference on Monday in Tehran.Friction between Israel and Iran has been high at a time U.S. President Joe Biden is exploring rejoining a 2015 accord designed to reduce Tehran’s nuclear activities. Netanyahu opposes Washington returning to the pact, saying it would pave the way for Iran to build a nuclear weapon. Biden’s predecessor, Donald Trump, withdrew the U.S. from the accord in 2018 and tightened sanctions on Iran.Iran has accused Israel of several attacks and killings in the past year. It said Israel sabotaged one of its nuclear facilities in July and assassinated a top Iranian nuclear scientist in November.Israeli media reported that the country launched missile strikes on Iranian targets in Syria over the weekend in response to the assault on the ship. Israel’s military did not comment.The Helios Ray, owned by Tel Aviv-based Ray Shipping Ltd., had traversed the Strait of Hormuz and was on its way to Singapore when the explosion occurred, according to tracking data compiled by Bloomberg and information from U.K. Maritime Trade Operations, which serves as a link between the Royal Navy and commercial vessels in high-risk areas. It turned around on Feb. 26.The Associated Press, citing unnamed American officials, said the explosion created two holes on each side of the ship, just above the waterline.Several merchant vessels have been attacked or detained in the Persian Gulf and Gulf of Oman over the last two years, rattling oil and shipping markets. Iran seized a South Korean-flagged oil tanker in the Strait of Hormuz in January and its forces boarded another ship in the Gulf of Oman in August 2020. It also detained the U.K.-flagged Stena Impero for several months in 2019.Four oil vessels were attacked with explosives in May 2019 while at anchorage off Fujairah, a United Arab Emirates port on the Gulf of Oman coast. Two more were sabotaged in the Gulf of Oman in June. Iran was blamed for the incidents but denied involvement.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
The payments in President Biden's COVID relief plan will rely on an IRS formula.
Berkshire Hathaway Inc (NYSE: BRK-A) (NYSE: BRK-B) CEO Warren Buffett over the weekend wrote his annual letter to shareholders and highlighted the “power of repurchases” using Apple Inc (NASDAQ: AAPL) as an example. What Happened: Buffett said that Berkshire began buying shares of the iPhone maker in late 2016 and by early June 2018 owned more than one billion shares (adjusted for splits). “Saying that, I’m referencing the investment held in Berkshire’s general account and am excluding a very small and separately-managed holding of Apple shares that was subsequently sold. When we finished our purchases in mid-2018, Berkshire’s general account owned 5.2% of Apple,” wrote the veteran investor. The cost for acquiring that stake was $36 billion and since then Berkshire has enjoyed regular dividends averaging about $775 million annually and has pocketed an extra $11 billion in 2020 by selling a small part of its holdings. The continuous repurchase of shares by Apple and the consequent shrinking number of shares outstanding has meant that Berkshire now owns 5.4% of the Tim Cook-led company. “That increase was costless to us,” wrote Buffett. Why It Matters: Berkshire’s third-quarter operating profits declined 32% to $5.48 billion from $8.07 billion a year ago. The company repurchased .3 billion worth of stock in the period. Since Berkshire also repurchased its own shares during the past two and a half years, its shareholders now own a full 10% more of Apple’s assets and future earnings than they did in July 2018, wrote Buffett. “This agreeable dynamic continues. Berkshire has repurchased more shares since yearend and is likely to further reduce its share count in the future,” revealed the Oracle of Omaha. Buffett also pointed to Apple’s publicly stated intention to repurchase shares and thus Berkshire shareholders would find “their indirect ownership of Apple increasing as well.” This year the Buffet-led company cut its position in Apple by 6% to 887 million shares in the latest quarter but upped stakes in AbbVie Inc (NYSE: ABBV), Bristol-Myers Squibb Company (NYSE: BMY), and Merck & Co, Inc (NYSE: MRK). Apple still remains the single largest investment in Berkshire’s portfolio. Price Action: Berkshire Class A shares closed nearly 0.9% lower at $364,580 on Friday. On the same day, the company’s Class B shares closed 1.3% lower at $240.51. Apple shares closed almost 0.2% higher at $121.26 and fell 0.41% in the after-hours session. Photo courtesy: Freeimage4life via Flickr. See more from BenzingaClick here for options trades from BenzingaApple To Offer 1TB Storage Option In iPhone 13: ReportTop 10 Electric Vehicle Stocks You Should Know About© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
As Washington awaits the House of Representatives' vote on the $1.9 trillion COVID-19 relief bill on Friday, California Governor Gavin Newsom signed a coronavirus aid package worth $7.6 billion,...
Find out Tiger Woods' net worth after he won his fifth Masters title on April 14. The victory was Woods' first major win in more than a decade.
The legislation, which just passed the U.S. House, includes several tax savers.
My brother owes $10K to our late father’s estate. There’s no loan agreement and I’m executor. How should I approach repayment?
‘He feels that if he had paid this money back before dad passed, he would still get half back and, therefore, owes $5,000.’
Dogecoin (CRYPTO: DOGE), the joke cryptocurrency popularized by Tesla Inc (NASDAQ: TSLA) CEO Elon Musk, has received an under-the-hood upgrade. What Happened: The release of the Dogecoin Core 1.14.3 was announced on the r/dogecoin discussion board on Reddit on Sunday. The update includes “important performance improvements," and is a “strongly recommended update for everyone [running a DOGE node].” Why It Matters: Significant improvements to the speed at which a node can upload blocks will be made by removing expensive integrity checks which were previously carried out each time a block was sent to another node after the update is applied. The default time that transactions are cached in the mempool — a mechanism for storing information on unconfirmed transactions — will be reduced from 336 hours to 24 hours. See Also: In Bitcoin's Path Back To ,000, Institutional Investors, Whales Battle Miners The default setting can be modified by inputting a value in hours that makes the most sense for the use cases the node serves. Technical development in DOGE has mirrored Bitcoin (CRYPTO: BTC), according to CoinDesk. “Since March 2014, “[Dogecoin Core] has always been based on Bitcoin,” said DOGE developer Maximilian Keller, as per CoinDesk. The price increase in the meme cryptocurrency has hastened the improvements in the Shiba-Inu-themed cryptocurrency. DOGE has risen 812.56% since the year began. In the same period BTC has given 58.12% returns. Price Action: DOGE traded 0.82% higher at $ 0.049 at press time, while BTC traded 0.54% higher at $46,637.15. Read Next: Dogenomics: What's So Special About Dogecoin Anyway? See more from BenzingaClick here for options trades from BenzingaIn Bitcoin's Path Back To ,000, Institutional Investors, Whales Battle MinersWhy Cardano Is Surging Amid Bitcoin-Led Crypto Slump© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The Biden administration announced a slew of changes to the Paycheck Protection Program today, which aims to help "the smallest businesses" and women and minority-owned businesses, according to a...
(Bloomberg) -- As interest-rate jitters supercharged a meltdown in the world’s biggest bond market, Sam Sicilia barely blinked.“The markets are wrong” about inflation expectations, said Sicilia, chief investment officer of the A$56 billion ($43 billion) Host-Plus Pty pension fund in Melbourne. “Deflationary forces are bigger. Interest rates are going to stay at effectively zero.”With governments around the globe still adding to trillions of dollars of stimulus to ride out the pandemic, pension fund managers who are trying to discern the long-term effects are posing the question: Will inflation make a comeback? If it does, more than $46 trillion of global pension assets would be affected as central banks pivoted toward sustained higher interest rates.Interviews with five pension funds that help oversee parts of Australia’s A$2.9 trillion ($2.3 trillion) in retirement assets reveal a rank of investors largely unconcerned about the risk of rising prices.Last week, bond trades triggered speculation that inflation may accelerate to multi-year highs as the inevitable conclusion to the world’s $19.5 trillion coronavirus rescue package. Yields on 10-year Treasuries surged to pre-pandemic levels on Thursday, convulsing markets from stocks to credit as traders bet on more aggressive tightening -- with a U.S. interest rate hike briefly priced in for late 2022, at least a year earlier than the Federal Reserve had signaled.Debt markets calmed on Monday, as investors bet central banks would ramp up asset purchases to prevent yields rising too quickly.“I don’t think they would want to risk any recovery” by allowing markets to tighten too quickly, said Michael Clavin head of fixed-income at the A$140 billion Aware Super, Australia’s second-biggest pension fund by assets. There may be a “burst of inflationary data, but we’re not really sure it’s sustainable.”Wind VaneLike Sicilia, Clavin points to technology advancements as the biggest damper on long-term price growth.Economists have struggled for years to quantify technology’s deflationary impact on everything from supply chains to wage growth -- Clavin’s wind vane for price pressures -- but the overall effect has been to stifle price increases. And that’s not including the increased unemployment from the pandemic.Read More: Aggressive Fed Hike Bets Spur Treasury Buy-the-Dip Calls“There’s still quite a big hurdle to get the jobs back that were lost,” Clavin said. “I don’t see how you’re going to overcome those deflationary forces without some sort of wage growth.”Aware is sticking to a strategy that includes being overweight in global equities and cash in its default option to ride out the market volatility. It also invests about 15.6% of its default fund in fixed-income assets.Sicilia continues to shun “outrageously expensive” bonds and is investing in stocks and private equity on bets that risk-assets will continue to outperform as central banks keep rates near record lows.“In five to 10 years’ time, you’ll have people saying ‘we should have bought equities at 20 times earnings,’” he said. “If technology is the root cause of no inflation, that means you’re not going to be able to generate inflation anytime soon.”While bond markets suggest there may be “inflation in the pipeline”, it might be short-lived, said John Pearce, Sydney-based investment chief at the A$90 billion UniSuper Management Pty.The 30-year market veteran points to Japan as an example where inflation remains elusive despite years of quantitative easing and ultra-loose monetary policy. Markets today are a far cry from the 1970s when a massive oil shock and collapse of the Bretton Woods system turbocharged price hikes, he said.“You look at the marginal cost of everything just plummeting because of the improvements in technology -- I don’t see that stopping anytime soon,” said Pearce. “We’re not a believer that we’re going to see persistently high inflation.”It may be “worth having a look at” 10-year Treasuries if yields climb to 2.5%, he said.Contrarion BetsThat’s not to say that the recent volatility hasn’t produced some buying opportunities.When bond yields plunged to historic lows last year, IOOF Holdings Ltd. pivoted some of its funds from government debt to credit and senior loans. By December, one of the Melbourne-based pension’s underlying asset managers had switched from a long duration position -- or holding securities with higher interest-rate risk -- to a short on signs inflation pressures were building.The wagers paid off. During the worst month for Australian bond returns on record, the fund’s fixed-income strategy rose 0.6%.“Because we’re starting from such a low base on inflation, you’re probably likely to see over the next three-to-six months” economic data showing some price rises, said Osvaldo Acosta, head of fixed-interest assets who studies bonds and stock returns to look for an inflection point for inflation. “The greatest risk that we saw for the last 12 months was the amount of stimulus both monetary and also fiscal that was coming through -- it is just tremendous.”Now, with U.S. yields pulling global rates higher, Acosta is weighing his fund’s position. “Bonds are starting to look attractive,” he said.Even so, most of those managing Australia’s giant pension funds don’t see a return to the high levels of inflation that characterized U.S. economics in the 1970s.Con Michalakis, chief investment officer of Statewide Superannuation Pty, compares the S&P 500 Index dividend yield against the U.S. 10-year benchmark as a bond valuation barometer and he’s now looking at opportunities in government debt after the selloff.“We’re going to hit an inflection point -- bonds near 2% offer some insurance value that they didn’t offer when they were 80 basis points,” said Adelaide-based Michalakis. “We are in an era of slightly higher structural long-term inflation, but nothing disastrous.”(Adds tout)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
When you buy $1,000 of a company’s stock in your Robinhood account, how much of that cash goes directly to help fund the company and its business operations? The answer is $0. Where Your Cash Goes: The issue of buying shares of stock to help “save” struggling companies like GameStop Corp. (NYSE: GME) and AMC Entertainment Holdings Inc (NYSE: AMC) has come up frequently on social media since the WallStreetBets-fueled meme stock buying frenzy began in January. However, experienced investors know that publicly traded companies don’t get a dime from the cash you spend buying their shares of stock. Related Link: Kevin O'Leary Of 'Shark Tank,' Benzinga CEO Jason Raznick Talk GameStop, Bitcoin And Economic Recovery Trades Companies typically raise cash in the public market when they first go public via an initial public offering (IPO), a merger with a special acquisition company (SPAC) or a direct listing. However, once their shares are trading on the public market, any shares you buy in your brokerage account are coming directly from another shareholder who is selling, not the company itself. Aside from any trading fees you may spend on the transaction, every dollar you spend buying shares of GameStop, AMC or other stocks ends up in the brokerage account of the person or institution that sold them to you. AMC and GameStop traders on Reddit and Twitter have been celebrating their efforts to “save” these companies by buying shares of stock. In reality, the companies haven’t gotten any funds from any of the recent stock buying. How Public Companies Raise Funds: Once a company is public, it must raise capital via options such as a follow-on public offer (FPO), also known as a secondary offering. FPOs can be both dilutive or non-dilutive. A non-dilutive FPO happens when the founders or other large shareholders sell some of their shares to the public. An FPO may increase a stock’s float, or free-trading shares, but it does not increase the company’s outstanding shares or decrease its EPS. A dilutive FPO happens when a company creates new shares to sell to the public. By creating new shares, the ownership stakes of existing shareholders are decreased slightly the same way the value of a currency erodes when central banks print more money. Companies can also raise capital by borrowing money. However, the company must first find a lender that will agree on a reasonable interest rate. Many lenders don’t want to touch struggling companies like AMC and GameStop because they aren’t convinced they will be able to pay back their debts. What It Means For Meme Stocks: Despite all the publicity and wild volatility in GameStop, the company itself hasn’t actually been directly helped by all the retail buying. GameStop reportedly considered selling more shares during the January rally, but the SEC has said it would closely scrutinize any company that attempted to take advantage of the extreme trading volatility to knowingly sell overpriced shares to vulnerable investors. In June 2020, bankrupt Hertz Global Holdings Inc (OTC: HTZGQ) withdrew a proposed $500 million equity offering after the SEC cracked down on the company for potentially preying on investors. AMC, on the other hand, was able to raise $1.2 billion via debt and equity deals in January after its stock rallied more than 700%. “The irony here, of course, is that GME couldn’t even tap equity markets to take advantage of the recent short squeeze,” DataTrek Research co-founder Nicholas Colas said this week. He said the so-called “dumb money” flowing into the market may not be helping the companies directly, but it is certainly making short sellers think twice. “You don’t have to be long, but betting against people who think their 10-share buy order is going to change the world is both risky and not actually a fundamentally-based investment position,” Colas said. Benzinga’s Take: GameStop hasn’t been helped directly by all the retail stock buying, but investor enthusiasm and a higher stock price definitely help more than it hurts. If GameStop can now demonstrate its army of new investors and its massive amount of free publicity has translated into improved sales and earnings numbers, the company may have several funding options open up in the near future. GameStop reports fourth-quarter earnings in late March. Photo by Sharon McCutcheon on Unsplash. Latest Ratings for GME DateFirmActionFromTo Jan 2021B of A SecuritiesMaintainsUnderperform Jan 2021Telsey Advisory GroupDowngradesOutperformUnderperform Oct 2020JefferiesDowngradesBuyHold View More Analyst Ratings for GME View the Latest Analyst Ratings See more from BenzingaClick here for options trades from BenzingaWhy GameStop Stock Traders Should Beware The 'Law Of Twos And Threes'Kevin O'Leary Of 'Shark Tank,' Benzinga CEO Jason Raznick Talk GameStop, Bitcoin And Economic Recovery Trades© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
(Bloomberg) -- Bitcoin is nursing losses after its worst weekly plunge in almost a year and on one view its longer term outlook could be even worse because of environmental concerns and tightening regulations.The sheer amount of energy needed to mine Bitcoin and the prospect that governments will create more obstacles for the largest cryptocurrency point to the token losing “most of its value over time,” BCA Research Inc. said.The expense and slowness of Bitcoin transactions make it “unsuitable as a medium of exchange,” BCA Research Chief Global Strategist Peter Berezin wrote in the report released Friday. In addition, environmental, social and governance-focused funds are likely to shun companies associated with Bitcoin due to the large energy consumption by miners on computer networks.Bitcoin is still up more than five times over the past year, a divisive rally pitting believers in a new asset class against naysayers who see a speculative bubble. Among notable recent developments are Tesla Inc.’s $1.5 billion purchase of the token. At the same time, Microsoft Corp. co-founder Bill Gates and Treasury Secretary Janet Yellen are among those signaling caution.Governments will create more obstacles because they could lose billions of dollars in revenue from seigniorage -- the difference between the face value of money and the cost to produce it -- according to BCA.“Many companies have cozied up to Bitcoin in order to associate themselves with the digital currency’s technological mystique,” BCA’s Berezin added. “As ESG funds start to flee Bitcoin, its price will begin a downward spiral. Stay away.”Bitcoin, the largest cryptocurrency, was up 3% to about $46,615 as of 8:13 a.m. in London on Monday. That leaves it well off the record high of $58,350 set just over a week ago.Other commentators remain bullish on the outlook for digital currencies. While there are many risks, Bitcoin is at a tipping point and we may be “at the start of massive transformation of cryptocurrency into the mainstream,” Citigroup Inc. wrote in a report.The Citi team including Kathleen Boyle highlighted the token’s increased attractiveness for institutional investors and the argument that it can help to hedge inflation risk.In the shorter term, investment flows into Bitcoin funds may be among the keys to the price outlook. JPMorgan Chase & Co. strategists said inflows into the Grayscale Bitcoin Trust -- the largest traded crypto fund -- are “ceasing,” and the cash going into other Bitcoin vehicles isn’t “strong enough to prevent an overall slowing in the Bitcoin fund flow impulse.”(Updates with comment from Citigroup from the eighth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Bank of Japan officials are still prepared to stem any risk of Japan’s benchmark bond yield rising too much ahead of a policy review later this month and could even act before it hits 0.2%, according to people familiar with the matter.The central bank has no pre-set yield level in mind for entering the market as it depends on the speed of gains, the level, the main reasons behind increases and the state of global financial markets, among other factors, they said.The absence of BOJ action when the yield touched a five-year high of 0.175% on Friday left some market participants wondering if the bank has decided to sit tight until the results of the review expected on March 19.Read More: BOJ Mulls Three Pressure Points to Keep Stimulus Running LongerThe BOJ has a loose movement range of around 0.2 percentage point either side of its zero target for the yield. While the current ceiling is intentionally vague, the bank wouldn’t allow the yield to hit 0.3% ahead of the review as that would raise doubts over the credibility of yield curve control, they said.Some investors and economists see the bank widening the movement range around the zero target at the review as the BOJ tries to shore up its policy framework for the longer run. Others say recent jumps in yields have made it harder to do widen the range because the bank doesn’t want to give the impression there’s a green light for higher yields.While some bond fluctuations reflecting the recent global market shift in economic outlook are acceptable, the bank must keep the entire yield curve low and stable amid the pandemic, the people said.Central Banks Fight Bond Rout With Action and Promise of MoreThe remarks follow recent gains in global yields that have pushed up borrowing costs for governments toward the end of last week. The gains present a particular problem for central banks such as the BOJ and the Reserve Bank of Australia that target yield levels.The RBA defended its three-year yield on Friday and doubled down on bond purchases Monday, spurring the biggest drop in yields in a year.The BOJ can limit yield gains by buying more bonds in scheduled or unscheduled operations. Offering to buy an unlimited amount of bonds at a fixed-rate above the market level is one of its most powerful tools.“Unlike the Fed, it’s hard for the BOJ to sit tight in the face of a yield rise,” Yoshimasa Maruyama, chief market economist at SMBC Nikko Securities, wrote in a report Monday. “The BOJ could be tested by the market again on its stance to keep the yield low.”(Adds economist’s comments.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.