HALISTER1: Japan’s Bonds Drop; 20-Year Yield Rises for First Time in March

Japan’s Bonds Drop; 20-Year Yield Rises for First Time in March

(Bloomberg) -- Yield on Japan’s 20-year govt bond climbs 6 bps to 0.365%, poised to snap seven straight days of declines; 10-year yield rises 4.5 bps to -0.050%.
  • 5-year yield adds 2.5 bps to -0.200% before finance ministry auctions 2.5t yen ($22.2b) of similar-maturity debt tomorrow
  • There’s pressure for correction resulting from rapid gains in bonds yesterday, Mitsubishi UFJ Morgan Stanley Securities writes in note today; says, in the past, Japanese and German yields rebounded sharply 25-30 business days after BOJ began QQE in April 2013 and ECB started QE in March 2015, respectively; adds it’s been 27 business days since BOJ adopted negative-rate policy
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Source: BFW (Bloomberg First Word)

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