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Morning Bid: Land of the rising yields

Mount Equity Group Tokyo Japan > News > Markets > Morning Bid: Land of the rising yields

A look at the day ahead in U.S. and global markets from Mike Dolan.

Of all the financial surprises of 2022, the Bank of Japan’s decision to finally join its G7 peers in effectively tightening borrowing rates is up there with the shocks of the year – in its timing at least.

In the last major central bank set-piece of the year, the BOJ raised its long-standing cap on 10-year Japanese government bond yields by quarter of a percentage point to 0.5% – sending those yields and the yen surging and squeezing stocks further.

With inflation numbers due this week expected to show price rises creeping to near twice the BOJ’s 2% target, there had been reports and speculation in recent days that a change of the central bank’s super-easy policy was in the works. Yet most investors felt that was only likely when BOJ chief Haruhiko Kuroda stepped down in April.

Thursday’s move was presented in an ambiguous way – with Kuroda stressing that 10-yield…

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