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Japan Starting to Crack as Yen Tumbles With Stocks and Bonds

  • Bonds sell off and stocks drop as Japan lags Fed tightening
  • BOJ steps up defense of easy policy as bond yields push limit
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WATCH: The yen fell to the lowest since Oct. 1998 on Monday. Enda Curran reports.Source: Bloomberg
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With the yen at a 24-year low, Tokyo stocks down the most since March and bond yields hitting its ceiling, the Bank of Japan is under duress having to defend a policy the rest of the world is quickly moving on from.

In his clearest warning yet on the yen’s weakness, BOJ Governor Haruhiko Kuroda, 77, said Monday that the recent abrupt slide of the currency is bad for the economy, while the central bank reinforced efforts to keep a lid on yields. Still, the yen fell 0.6% to 135.19 per dollar, the lowest since 1998.