Menu

Search

  |   Commentary

Menu

  |   Commentary

Search

10-year JGB yields hover around zero as BoJ strongly maintains ultra-easing policy stance

The benchmark 10-year Japanese bonds yields hovered around zero percent as the Bank of Japan maintained its ultra-easing policy stance in its October meeting summary.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose 1/2 basis points to 0.030 percent, the yield on long-term 30-year dipped 1 basis point to 0.799 percent and the yield on short-term 2-year too remained steady at -0.203 percent by 04:30 GMT.

The Bank of Japan’s nine-member board debated calls from one of its policymakers to target the longer end of the yield curve at a rate review in October, a summary of their opinions showed, with several stressing that the current stimulus was sufficient. One board member said the BOJ should pledge to guide the 15-year government bond yield lower than 0.2 percent, instead of aiming to guide the 10-year yield around zero percent, Reuters reported.

Japan Balance of Payment’s CAB fell to 2,271.2 billion yen in September, lower than the Reuters median consensus of 2,363.4 billion yen, lower from August’ 2,380.4 billion.

On the other hand, the U.S. Treasury yields edged higher overnight with the yield curve close to its flattest level in a decade. Demand for new issues has been solid, led by $23 billion of U.S. benchmark 10-year Treasury notes, the second part of the November quarterly refunding worth $64 billion. A healthy appetite for longer-dated debt underscored traders' preference for them over shorter-dated issues over the past week and a half, as they brace for further rate increases from the Federal Reserve while expecting domestic inflation to hold below the Fed's 2-percent target.

Uncertainty about whether Republicans in U.S. Congress will pass tax cuts and other changes to the federal tax code have made such "curve-flattener" trades more appealing, they said, as have diminished chances the government will introduce a Treasury bond that matures beyond 30 years. Additionally, markets receive 30-year Bond auctions on Thursday, respectively.

Meanwhile, Japan’s Nikkei 225 traded 1.75 percent higher at 23,315.00 by 04:40, while at 04:00GMT, the FxWirePro's Hourly Yen Strength Index remained neutral at 34.05 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest

  • ET PRO
  • Market Data

Market-moving news and views, 24 hours a day >

November 24 15:30 UTC Released

USECRI Weekly Index*

Actual

145.6 %

Forecast

Previous

145.6 %

November 24 14:45 UTC Released

US1st Half-Mth Infl YY*

Actual

54.6 %

Forecast

Previous

54.6 %

November 27 09:00 UTC 35373537m

ITExport Prices*

Actual

Forecast

Previous

111 %

November 27 09:00 UTC 35373537m

ITImport Prices*

Actual

Forecast

Previous

116.1 %

November 27 14:00 UTC 38373837m

MXTrade Balance, $*

Actual

Forecast

Previous

-1.886 Bln USD

November 27 14:00 UTC 38373837m

MXTrade Balance SA*

Actual

Forecast

Previous

-1.559 Bln USD

November 27 15:30 UTC 39273927m

USDallas Fed mfg bus index

Actual

Forecast

Previous

27.6

November 27 21:00 UTC 42574257m

KRBOK Manufacturing BSI*

Actual

Forecast

Previous

87 Bln BRL

November 28 00:00 UTC 44374437m

BRCentral Govt Balance

Actual

Forecast

Previous

-22.725 Bln BRL

November 28 07:00 UTC 48574857m

DEGDP Growth QQ* Advance

Actual

Forecast

Previous

10.7 %

Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.