Treasuries Fall as Asian Stocks Gain Before BOJ Decision
Treasuries fell as Asian stocks rose on speculation the Bank of Japan (8301) will increase efforts to spur growth in the world’s third-biggest economy.
U.S. 10-year yields climbed two basis points to 1.87 percent as of 9:22 a.m. in Tokyo, according to Bloomberg Bond Trader data. The price of the 1.625 percent security due in November 2022 slid 6/32, or $1.88 per $1,000 face amount, to 97 27/32.
The MSCI Asia Pacific Index of stocks advanced 0.2 percent, snapping a decline from yesterday. Trading of U.S. government securities opened in Asia after being closed yesterday for the Martin Luther King Jr. holiday.
The BOJ will today adopt Prime Minister Shinzo Abe’s desired 2 percent inflation target, according to 21 of 23 economists surveyed by Bloomberg News. The economists also predict the central bank will expand its monetary easing programs.
The U.S. 10-Year breakeven rate climbed to two-month high. The rate, the difference between yields on nominal Treasuries and inflation-linked securities, reached 2.55 percent, the highest since Nov. 2.
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