Japan Yields Rise to Levels When BOJ Began Negative-Rate Policy
- Move follows advance in U.S. 10-year yield to seven-year high
- BOJ won’t step in until yield approaches 0.2% rapidly: BofAML
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A global bond selloff has sent Japan’s benchmark yield to a level last seen when the central bank introduced its negative interest-rate policy in January 2016 to revive a weakening economy.
The 10-year yield rose two basis points to 0.155 percent on Thursday, after a rout in Treasuries that saw similar-maturity U.S. yields jump to the highest level since 2011. The advance will test the Bank of Japan’s newly-adopted objective to allow the benchmark to fluctuate more before it steps in to intervene.