Japan 10-Year Yield Drops to Five-Month Low on BOJ Buying, Fed Japan’s bonds advanced, sending long-term yields to the lowest in five months, after the central bank scooped up government securities and in the wake of gains in U.S. Treasuries yesterday. The benchmark 10-year debt yield fell as low as 0.6 percent, the least since May 9, following declines in U.S. yields after a report yesterday showed payrolls in the world’s largest economy climbed less than projected in September. The Bank of Japan today offered to buy 800 billion yen ($8.2 billion) of bonds as part of a program to keep borrowing costs low, stimulating growth and inflation. “Japan’s 10-year yield could break below the psychological 0.6 percent level,” said Teruyoshi Sotome, a Tokyo-based senior bond strategist at Mizuho Securities Co., one of the 23 primary dealers obliged to bid at government debt sales. Japan’s 10-year yield slid one basis point, or 0.01 percentage point, to 0.605 percent as of 4:15 p.m. in Tokyo, according to Japan Bond Trading Co. The 5-year yield touched 0.2 percent, the lowest since April 12, and the 20-year rate dropped to 1.45 percent, the least since May 2. U.S. 10-year yields declined to a three-month low today amid speculation the Federal Reserve will push back plans to trim its bond-purchase program. A report yesterday showed U.S. employers added 148,000 positions in September, versus the median forecast for 180,000 in a Bloomberg News survey. “Fed tapering has been pushed back significantly and it would be difficult even in March,” said Shogo Fujita, the chief Japanese bond strategist in Tokyo at Bank of America Merrill Lynch, another primary dealer. U.S. employment figures were “weak,” he said. The BOJ today offered to buy 250 billion yen in government bonds maturing in one to three years; 350 billion yen of securities due in three to five years and 200 billion yen in bonds with maturities that are more than 10 years.
Posted on: Wed, 23 Oct 2013 07:46:00 +0000
Trending Topics
Recently Viewed Topics
© 2015