Bank of Japan's Policy Decisions Impact US 10-year Yields

Friday, 15 March 2024, 14:26

US 10-year yields are nearing yearly highs due to CPI numbers and Bank of Japan's potential actions. The BoJ is expected to drop negative rates and yield curve control, affecting global bond markets. Despite this, the market remains cautious about the actual impact of BoJ's decisions, leading to a possible 'buy the fact' scenario after the recent 'sell the rumor' phase. Amidst anticipated hawkish moves from the FOMC, the bond market faces decisions on buying opportunities.
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Bank of Japan's Policy Decisions Impact US 10-year Yields

Market Insights:

US 10-year yields are approaching yearly highs as a result of recent economic developments.

Bank of Japan's Influence:

  • iDespite hot CPI numbers and weaker retail sales, BoJ's potential actions have a significant impact on bond markets.
  • BOJ might drop negative rates and yield curve control, impacting global bond buying and leaving private sectors to take over.

Market Speculation:

  1. bMarket remains cautious about the actual outcomes of BoJ's decisions, which might result in a 'buy the fact' scenario.
  2. iAnticipated hawkish moves from the FOMC and decreased expected rate cuts add to the uncertainty.

Considering the resistance levels and hawkish signals ahead of the Fed meeting, there's a compelling case for bond purchases.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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