Free Trial

MNI BRIEF: Japan 10-Yr JGB Yield Hits 0.562%; Above BOJ Range

(MNI) Tokyo

The yield on the 10-year Japanese government bonds rose as high as 0.560% in Friday trade, above the upper limit of the Bank of Japan’s recently amended target range of around -0.5% and +0.5%, before falling back to trade around 0.52%.

The rise in yields was caused by persistent speculation that the BOJ may tweak monetary policy at the January 17-18 meeting, as distortion of financial markets continued despite the December decision (MNI POLICY: BOJ Eyes Maturities As Yield Pressure Persists), BOJ officials are examining how the December policy tweak has impacted the yield curve formation.

To address the spoke in bonds Friday, the BOJ offered to broadly buy JGBs via extraordinary and fixed-rate bond buying operations of medium-term bonds, along with regular fixed-rate buying of long-term bonds.On Thursday, the BOJ bought JPY4.6 trillion JGBs, its largest bond buying day on record.

MNI Tokyo Bureau | +81 90-2175-0040 |
MNI Tokyo Bureau | +81 90-2175-0040 |

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.