HALISTER1: Japan Bonds Gain; BOJ Gets More Interest to Sell Short-Term Debt

Japan Bonds Gain; BOJ Gets More Interest to Sell Short-Term Debt

(Bloomberg) -- Yield on Japan’s 20-year govt bond drops 3 bps to 0.375% and benchmark 10-year yield declines 2 bps to -0.070%, while Nikkei 225 slides 3.5% after BOJ’s quarterly Tankan survey shows worsening corporate sentiment.
  • “Investors have no choice but to buy bonds when stocks fall” given BOJ buys bonds from secondary market, Jun Fukashiro, senior fund manager in Tokyo at Sumitomo Mitsui Asset Management, says in interview
  • Bid-to-cover ratio at BOJ’s purchase of debt with maturities of one year or less was 6.62 times today, up from 4.14 times at March 22 purchase operation for identical maturities
  • Currently, all yields on Japanese govt bonds with maturities of up to 10 years are below zero
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Jun Fukashiro (Sumitomo Mitsui Asset Management Co Ltd)

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