Japan Bond Curve Steepening Eyes Decade Long Equilibrium: Charts
Source: BFW (Bloomberg First Word)
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(Bloomberg) -- Spread between 10-year and 30-year JGB yields may have further to widen as investors consider the possibility of BOJ reducing purchases of bonds maturing beyond 25 years at next week’s policy meeting, according to Bloomberg strategist Mark Cranfield.
Alert: HALISTER1- In past decade, 79 bps marks the midpoint of 10- to 30-year spread with high seen in Jan. 2013 at 125 bps, low in June this year at 32 bps; click here for chart
- This year’s widest spread point was 107 bps touched in Feb.
- Spread steady at 56 bps ahead of today’s auction of 20-year JGBs
- Related story: Yield hunters become the hunted
- NOTE: Mark Cranfield is an FX strategist who writes for First Word. The observations he makes are his own and are not intended as investment advice.
Source: BFW (Bloomberg First Word)
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UUID: 7947283