Global Bonds May Suffer From Even a Small BOJ Policy Tweak
- Japan owned $2.4 trillion of overseas debt at end of 2017
- A jump in Japan yields can lure funds away from other markets
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Global bond markets may be next to feel the impact of the biggest surge in Japan’s benchmark 10-year yield in almost two years.
The advance in the yields, which came on the back of media reports that the Bank of Japan may discuss possible changes to its ultra-loose monetary policy next week, can potentially have a bearing on the 269.5 trillion yen ($2.4 trillion) of overseas bonds owned by Japanese funds.