Japan’s Worst Bond Rout Since 2013 Feeds Anxiety BOJ Near Limits
- 10-year yield rises to within 3 basis points of being positive
- ‘No telling how far this will go,’ MassMutual’s Shimamura says
What Do the Last Three Days Tell Us About Japan?
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Japanese government bonds’ steepest tumble in more than three years is feeding speculation that central-bank easing is nearing its limits.
A four-day rout pushed 10-year yields to within three basis points of turning positive on Tuesday for the first time since March, after Bank of Japan policy makers disappointed investors last week by leaving bond buying and their negative deposit rate unchanged even as they increased exchange-traded-fund purchases. Pacific Investment Management Co. and former Ministry of Finance official Eisuke Sakakibara both say central bank Governor Haruhiko Kuroda is running out of room to expand stimulus.