Bond futures fell. US long-term interest rates have risen sharply following the announcement of strong economic indicators, and selling has become dominant following the downward trend in futures trading at night. The new 10-year government bond has yet to be traded, but some speculate that the yield may exceed the Bank of Japan’s upper limit of 0.5% for the second consecutive day.
Keisuke Tsuruta, a fixed income strategist at Mitsubishi UFJ Morgan Stanley Securities, said that the bond market has been dominated by selling due to the decline in bonds in Europe and the United States. At this point, it is difficult to say with certainty that long-term interest rates will exceed the BOJ’s maximum allowable limit.
S&P Global’s preliminary reading of the Composite Purchasing Managers’ Index (PMI) for February hit an eight-month high, raising concerns that the Fed’s interest rate hikes to curb inflation will be prolonged.
Newly issued 10-year bonds continue to be inactive due to declining liquidity, but Kazuo Ueda, the candidate for the next BOJ governor, who is about to hear his opinion on the 24th, moves to correct yield curve control. With the YCC attack (selling in anticipation of policy revisions), long-term interest rates fell for the first time in a month on the 21st.In some cases, it exceeded 0.50%.
|
|
Bank of Japan operation
- We carry out unlimited purchases of 10-year government bonds at a yield of 0.50% every business day.Continue limit price operations targeting the cheapest issues for the time being
