The Economic Information Daily reported on the 28th that Japan's 2-year government bond yield rose 4 basis points on Monday to 1.975%, approaching 2%, the highest level since 1995. Other tenors of government bonds were also under pressure, with the 5-year government bond yield rising 3 basis points to 2.43%.
After Bank of Japan Governor Kazuo Ueda provided limited guidance on the pace of policy tightening, investors worry the central bank may fall behind the curve. This has intensified market expectations that policymakers may eventually need to raise interest rates more aggressively, especially as the Federal Reserve could widen the interest rate differential between the U.S. and Japan.
Strategists including Ataru Okumura at SMBC Nikko Securities said in a report that bets on the Bank of Japan accelerating monetary policy tightening are gaining support, as politicians both domestically and abroad pay more attention to the weak yen. (rc)
After Bank of Japan Governor Kazuo Ueda provided limited guidance on the pace of policy tightening, investors worry the central bank may fall behind the curve. This has intensified market expectations that policymakers may eventually need to raise interest rates more aggressively, especially as the Federal Reserve could widen the interest rate differential between the U.S. and Japan.
Strategists including Ataru Okumura at SMBC Nikko Securities said in a report that bets on the Bank of Japan accelerating monetary policy tightening are gaining support, as politicians both domestically and abroad pay more attention to the weak yen. (rc)
