U.S., Japanese Bonds Trim Loss as BOJ Seen ‘Not Hawkish at All’
- BOJ introduced efforts to control yield curve in Japan
- Slump in Japanese bonds in past month had roiled global peers
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Treasuries and Japanese bonds trimmed losses triggered by the Bank of Japan’s decision to target 10-year yields in the nation at zero.
Government securities initially fell on the statement, with the BOJ indicating it wouldn’t allow 10-year yields to return to the record low of minus 0.3 percent seen as recently as July. Bonds then recouped losses on speculation the policy will also prevent yields from rising.