Analysis-Japan unshackles its sliding bond market

  • 📰 YahooFinanceCA
  • ⏱ Reading Time:
  • 48 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 23%
  • Publisher: 63%

Business News News

Business Business Latest News,Business Business Headlines

One of the last anchors for global bond markets was being hauled in on Tuesday, as the Bank of Japan announced a new degree of tolerance for rising...

SINGAPORE/TOKYO - One of the last anchors for global bond markets was being hauled in on Tuesday, as the Bank of Japan announced a new degree of tolerance for rising government bond yields and signalled an end to its seven-year straightjacket on long-term rates.

The BOJ's vow to buy the 10-year bond at a yield of 1% every day is now gone, replaced with a vaguer promise to buy taking account "market rates and other factors," which was taken by markets as a green light for ultra-low yields to rise. Japanese authorities will no longer be leaning so forcefully against the rising tide of global interest rates.

The gap between 10-year Japanese yields and their U.S. equivalent also hit over 400 basis points in October - its widest for more than 22 years, which has driven the yen close to three-decade lows. BOJ Governor Kazuo Ueda said he has no pre-set ideas on the sequence of an end to yield curve control or negative rates, and that he doesn't expect the 10-year yield to sharply exceed 1% on a sustained basis. It didn't on Tuesday.

Bill Gates' former assistant is the world's 5th-richest person — and he's close to overtaking the Microsoft cofounder

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 47. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

AB InBev to report Q3 earnings Tuesday: What to watch forBeer maker Anheuser-Busch InBev (BUD) will report third-quarter earnings on Tuesday, October 31. Analysts expect volume growth to decline for another...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »