HALISTER1: U.S. Treasury Curve Bear-Steepens Tracking Japan Bonds: Mizuho

U.S. Treasury Curve Bear-Steepens Tracking Japan Bonds: Mizuho

(Bloomberg) -- Long-end Treasury bonds are sold in response to sell-off in similar-maturity debt in Japan after BOJ decision today, says Hiroko Iwaki, senior foreign bond strategist at Mizuho Securities.
  • Doesn’t expect bear-steepening of U.S. curve to continue
  • Short end of Japan’s curve is firmly anchored, so BOJ-led steepening is unlikely to continue
  • Fed unlikely to send hawkish signals when bond markets show cracks
  • Sees today’s FOMC turning out to be dovish, exerting flattening pressure on U.S. curve
  • NOTE: Treasury 10-yr yield adds as much as 5 bps to 1.73%, while 30-yr yield increases as much as 6 bps to 2.49%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Hiroko Iwaki (Mizuho Securities Co Ltd)

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