Interest Rate Futures Dynamics with Macroeconomics Announcements : Tick by Tick Evidence from the Japanese Market

This study gives a high frequency one- minute tick data analysis of the Japanese 3 month Euroyen LIBOR interest rate futures and 10 year Japanese Government Bond futures markets in response to scheduled macroeconomic announcements for a 9 year period encompassing January 2005 to December 2013. Follo...

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Main Author: Ramgutty, Deepa Anjali
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2015
Online Access:https://eprints.nottingham.ac.uk/28591/
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author Ramgutty, Deepa Anjali
author_facet Ramgutty, Deepa Anjali
author_sort Ramgutty, Deepa Anjali
building Nottingham Research Data Repository
collection Online Access
description This study gives a high frequency one- minute tick data analysis of the Japanese 3 month Euroyen LIBOR interest rate futures and 10 year Japanese Government Bond futures markets in response to scheduled macroeconomic announcements for a 9 year period encompassing January 2005 to December 2013. Following Ederington and Lee (1993), four announcements significantly affect the interest rate futures return volatility, and five significantly affect that of the government bond futures_ Two components of market efficiency, namely serial correlation of returns and volatility persistence are investigated. Japanese futures markets are seen as efficient, with most of the significant price reaction occurring within the first minute. Sharp peaking of volatility in excess of five times than that obtained during non- announcement days confirm that it is caused by the announcements. Volatility persisted at much higher values for the first twenty minutes, and remained slightly elevated even after one hour_ This study also finds no evidence that the impacts on the futures markets are driven by the news component of the macroeconomic announcement release.
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format Dissertation (University of Nottingham only)
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institution University of Nottingham Malaysia Campus
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language English
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publishDate 2015
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spelling nottingham-285912017-10-19T14:28:14Z https://eprints.nottingham.ac.uk/28591/ Interest Rate Futures Dynamics with Macroeconomics Announcements : Tick by Tick Evidence from the Japanese Market Ramgutty, Deepa Anjali This study gives a high frequency one- minute tick data analysis of the Japanese 3 month Euroyen LIBOR interest rate futures and 10 year Japanese Government Bond futures markets in response to scheduled macroeconomic announcements for a 9 year period encompassing January 2005 to December 2013. Following Ederington and Lee (1993), four announcements significantly affect the interest rate futures return volatility, and five significantly affect that of the government bond futures_ Two components of market efficiency, namely serial correlation of returns and volatility persistence are investigated. Japanese futures markets are seen as efficient, with most of the significant price reaction occurring within the first minute. Sharp peaking of volatility in excess of five times than that obtained during non- announcement days confirm that it is caused by the announcements. Volatility persisted at much higher values for the first twenty minutes, and remained slightly elevated even after one hour_ This study also finds no evidence that the impacts on the futures markets are driven by the news component of the macroeconomic announcement release. 2015-02 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/28591/1/RamguttyDeepaAnjali.pdf Ramgutty, Deepa Anjali (2015) Interest Rate Futures Dynamics with Macroeconomics Announcements : Tick by Tick Evidence from the Japanese Market. [Dissertation (University of Nottingham only)]
spellingShingle Ramgutty, Deepa Anjali
Interest Rate Futures Dynamics with Macroeconomics Announcements : Tick by Tick Evidence from the Japanese Market
title Interest Rate Futures Dynamics with Macroeconomics Announcements : Tick by Tick Evidence from the Japanese Market
title_full Interest Rate Futures Dynamics with Macroeconomics Announcements : Tick by Tick Evidence from the Japanese Market
title_fullStr Interest Rate Futures Dynamics with Macroeconomics Announcements : Tick by Tick Evidence from the Japanese Market
title_full_unstemmed Interest Rate Futures Dynamics with Macroeconomics Announcements : Tick by Tick Evidence from the Japanese Market
title_short Interest Rate Futures Dynamics with Macroeconomics Announcements : Tick by Tick Evidence from the Japanese Market
title_sort interest rate futures dynamics with macroeconomics announcements : tick by tick evidence from the japanese market
url https://eprints.nottingham.ac.uk/28591/