HALISTER1: Focus on BOJ’s Operation as 5-, 10-Year Yields Rise: Barclays

Focus on BOJ’s Operation as 5-, 10-Year Yields Rise: Barclays

(Bloomberg) -- The market is paying close attention to the BOJ’s bond purchase operations Friday as the yields on five- and 10-year government debt rise, says Naoya Oshikubo, rates strategist at Barclays Securities Japan.
  • 5-year yield rises to -0.05%, near the level that BOJ conducted fixed rate operation at -0.04% on Nov. 17
  • There are expectations that 10-year yield will find it hard to breach 0.11%, but if BOJ doesn’t take action, then the market could push the 10-year yield higher
  • It will be important for market participants to see the amounts that the central bank buys in the 5-to-10 year zone on Friday
  • Under current pace of rising yield, fixed rate operation could not be the only tool to cap the rise in JGB yields
  • NOTE: Previous amount of bond purchase in 5-to-10 year zone was 450b yen on July 5
  • NOTE: 10-year JGB yield earlier rose to 0.1% for the first time since Feb. 15
--With assistance from Chikafumi Hodo. To contact the reporters on this story: Daisuke Sakai in Tokyo at dsakai2@bloomberg.net; Kazumi Miura in Tokyo at kmiura1@bloomberg.net To contact the editors responsible for this story: Tan Hwee Ann at hatan@bloomberg.net Patricia Lui

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Naoya Oshikubo (Barclays PLC)

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