BOJ’s Yield Cap Shock Spurs $1.2 Billion Exodus From Bond ETF
- TLT posts biggest one-day outflow since January after BOJ move
- Concern is that Japanese investors will sell Treasuries: Tchir
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The Bank of Japan’s surprise decision to lift the cap on its benchmark bond yields sent exchange-traded fund investors fleeing from Treasuries.
Nearly $1.2 billion exited from the $28 billion iShares 20+ Year Treasury Bond ETF (ticker TLT) on Tuesday in the largest one-day outflow since January, Bloomberg data show. The withdrawals followed the BOJ’s announcement that it will allow Japan’s 10-year bond yields to rise to around 0.5%, doubling the previous limit.