HALISTER1: Unclear Whether BOJ Keeps Yield Curve Control Policy: PineBridge

Unclear Whether BOJ Keeps Yield Curve Control Policy: PineBridge

(Bloomberg) -- Lack of BOJ action against rising 10-year JGB yield at 2pm Tokyo time triggered selloff in the debt, says Tadashi Matsukawa, head of fixed income investment at PineBridge Investments Japan.
  • Investors will pay close attention to BOJ’s bond purchase operation tomorrow to see how the central bank reacts to the jump in 10-year yield, says Tokyo-based Matsukawa
  • Can’t imagine there will be no reaction from BOJ should yen rally past 112 against the USD
  • Japan 10-year yield rises as much as 2.5bps to 0.115%, first time above 0.1% since January 2016, when BOJ introduced negative-rate policy
  • NOTE: BOJ could have announced a fixed-rate operation at 2pm Tokyo time
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Tadashi Matsukawa (PineBridge Investments Holdings US LLC)

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