Deals
BOJ Policy Change Speculation Roils Markets
- Central bank’s offer to buy unlimited bonds drew no sellers
- Yield curve bear-steepens before 40-year debt sale on Tuesday
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A dramatic day for Japan’s debt market saw yields surge on media reports of possible changes to the nation’s ultra-loose monetary policy, spurring the central bank to offer to buy an unlimited amount of bonds.
The yield on 10-year government securities soared as much as six basis points to 0.09 percent, its biggest increase in almost two years, pulling the yen higher and weighing on stocks. While the yield came down after the purchase offer by the Bank of Japan, it then bounced back to just one basis point below the day’s high.