Japanese yen jumped after the BOJ decided to trim its purchase of very long-term (10-25years and over 25 years) JGBs. The surprising move was interpreted by many as the central bank’s policy to reduce stimulus. USDJPY slipped -0.42% while EURJPY was down -0.65% on Tuesday. Japanese longer- dated 20- and 40-year bond yields rose to their highest in a month. Longer- term US Treasuries were also affected by BOJ’s move with 10-year yields gaining +6 points to 2.546%.
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Longer- Term Yields Soared as BOJ Trimmed Purchases
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