Japan's Long Bonds Join Global Selloff as BOJ Tapers Buying
- BOJ reduced buying in bonds maturing in more than 25 years
- Yield on 40-year debt rises to highest level since November
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Japan is deepening a global bond selloff after a reduction in central bank purchases fueled the perception that it’s persisting with stealth tapering. Twenty-year yields jumped to the highest level since April 2017.
The Bank of Japan trimmed its buying of bonds due in more than 25 years by 10 billion yen ($88.9 million), to 50 billion yen at its regular operation on Friday -- the first reduction in the segment since July. That was enough to send local yields climbing close to the highest levels since the central bank introduced its negative interest-rate policy in January 2016.