Japan Bond Slump Puts More Pressure on BOJ to Tweak Policy
- Five-year yields rise to decade-high, swap rates also jump
- Japan policymakers are ‘prey’ in rates market: Mizuho’s Omori
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Japanese government bonds fell further on Wednesday, increasing pressure on the central bank to raise its yield-curve cap and prepare for an end to its negative interest-rate policy.
Market expectations that the Bank of Japan is getting closer to lifting interest rates have pushed bond yields to the highest in a decade. Five-year yields climbed to levels last seen in 2013 and the 10-year equivalent reached 0.8% for the first time since August that year, following similar moves for longer-maturity debt in recent days.