Yen Rises With Yields After BOJ’s Ueda Fuels Hike Speculation
- BOJ boss says lifting negative rate an option if goal achieved
- Japan bank shares jump as benchmark bond yield hits 0.7%
Kazuo Ueda
Photographer: Akio Kon/BloombergThis article is for subscribers only.
The yen advanced the most in two months against the dollar and Japanese government bonds slumped after Bank of Japan Governor Kazuo Ueda aired the possibility of ending the developed world’s last key negative interest rate.
While Japanese policymakers are likely to be pleased by the move in the currency after its bout of weakness this year, they appear to be on guard against yields rising too rapidly. The BOJ turned to its loans-for-bonds program to curb rising yields after the 10-year government benchmark jumped, but they continued to edge up, reaching 0.705%, the highest since 2013.