Traders Pull Back From Taking on the BOJ, Key Yield Curve Shows
- 5/10 curve steepest since before BOJ started negative-rates
- Five-year notes also draw demand from banks, says MUFJ-MS
The Bank of Japan (BOJ) headquarters in Tokyo.
Photographer: Toru Hanai/BloombergThis article is for subscribers only.
A closely-watched section of Japan’s yield curve steepened to the most in over six years, suggesting speculation has eased over tweaks to the Bank of Japan’s super-easy monetary policy.
The spread between five- and 10-year yields climbed to 24 basis points, the highest since the BOJ introduced its negative-rate policy in January 2016, according to Bloomberg data. The five-year yield has retreated in recent weeks, while the 10-year equivalent remains close to the 0.25% ceiling tolerated by the central bank.