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(IGM)[US GSES AND JAPAN] Seeking to head off any massive offshore unloading …

[US GSES AND JAPAN] Seeking to head off any massive offshore unloading of Fannie Mae and Freddie Mac bonds, the US Treasury Department took the unusual step of directly phoning this Thursday, senior executives at major Japanese banks as well as the Life Insurance Association of Japan per a website report in todays Nikkei. According to sources familiar with the matter, the phone calls by US Treasury Undersecretary for International Affairs David McCormick, were to explain Washington’s rescue plans for the US mortgage giants; with Mr McCormick also said to have urged Japanese institutions to continue investing with confidence in the GSEs. Japanese institutions based on data disclosed by domestic banks, life insurers and others as of March 31 are said to own more than 15 trn Yen in Fannie Mae/Freddie Mac securities 01:38 GMT - [DLR/YEN] is off the fixing demand led high of 107.31 to the figure level, but not to the earlier low of 106.88 (dips after the 107.41 peak). As this pair does fall into the deep zone, rebound would thus be limited, and as long as rebound keeps cutting short positions, long positions would not be adjusted forever. Offers are noted at 107.70-80. Bids are placed below 106.50 all way down to/through 106.00.

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(IGM)[EUR/YEN] rose to 150.67 on the WSJ article, eased to 149.65 (governmen…

[EUR/YEN] rose to 150.67 on the WSJ article, eased to 149.65 (government would not be involved), then is up to 150.55 on the WP article along with the fixing demand led [DLR/YEN]’s rise. The pair already fell bout 950 points this week vs about 900 points last week, and is pulling back to the breached 200-week MA (150.19). Tokyo institutions’ managers are telling their traders to square the positions ahead of Tokyo’s long weekend (and of course to prevent unnecessary losses due to news led movements at the thin market ahead of Mon Asian open). However there seems still a sense this pair would eventually rise, so caution to downside would always be needed. The pair again dips through the figure.

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(IGM)The [AUD/USD] had a volatile session since the Australasian session slipping f…

The [AUD/USD] had a volatile session since the Australasian session slipping from an earlier intraday high of 0.8096 where it was sold by macro accounts and a UK Clearer to an intraday low of 0.8007 where specs and investors came in to scoop the pair back to 0.8050 before another sell off to current level of 0.8025. Japanese investors buying the [AUD/JPY] from around the 85.80 level to an intraday high around the 86.60 level also gave the Aud/Usd a prop.

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(IGM)[NZ POLITICS] Prime Minister Helen Clark, seeking to extend her nine years in p…

[NZ POLITICS] Prime Minister Helen Clark, seeking to extend her nine years in power, has called for general elections to be held on November the 8th. Whilst Ms Clark’s ruling Labour party still trails in the opinion polls; her annoucement follows recent opinion surveys which have shown her Labour partys gap behind the opposition National Party, narrowing in to the lowest since March. At the end, its expected to be a tight fight, and could add yet more downside risk to the Kiwi.

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(IGM)[WAMU WOES] are not set to auger well with market sentiment; with Moodys see…

[WAMU WOES] are not set to auger well with market sentiment; with Moodys seen downgrading the unsecured debt of the largest US savings and loan provider by 2 notches, to a below investment “BA2″ grade after Thurs’s closing bell. On top of this, Moodys placed the rating on negative outlook, citing that WAMU’s access to the debt and equity markets remained severely strained. Ironically the downgrade to junk status came just after WAMU announced late on Thurs that it expected capital ratios to remain ’significantly” above requirements for well capitalized institutions. The bank also said it expected its loan loss provision to decline to $4.5 bln in Q3 vs $5.9 bln in the second quarter. The thrift is expected to report its full results on Oct 22nd.