Kuroda Seen Plotting Return of Yield Curve Drives Bond Rout
- Spread between 2- and 40-year yields widest since March
- Kuroda may pare purchases of super-long debt: Goldman’s Baba
Japan Bond Bears Eye 2013 Repeat
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Japan’s bonds are reeling from the worst month since at least 2010 on bets policy makers are plotting the return of a long lost friend of banks: the yield curve.
A gauge that tracks notes with maturities longer than 10 years completed the longest losing streak in three years amid concern Governor Haruhiko Kuroda will reduce purchases of such debt after a comprehensive review of monetary policy on Sept. 20-21. Thirty-year government bonds capped their biggest weekly slump since April 2013 after the BOJ refrained from purchasing the securities at its regular market operation on Sept. 2.