Treasury yields rise as market speculates on BOJ’s next move

  • Treasury yields rise as traders bet Bank of Japan will scrap negative rate policy
  • Yield on 2-year Treasury adds 1 basis point, 10-year Treasury rises 3.9 basis points
  • Global bond yields increase as BOJ considers ending negative interest rate policy
  • Market bets show 45% chance BOJ will increase rates this month
  • 30-year Japanese government bond auction sees weak demand
  • Japanese yen jumps 1.8% against the dollar
  • Investors eyeing U.S. jobs data and potential rate cuts by the Federal Reserve

Bond yields rose on Thursday as traders increased bets that the Bank of Japan (BOJ) will soon end its negative interest rate policy. The yield on the 2-year Treasury added 1 basis point, while the yield on the 10-year Treasury rose 3.9 basis points. Global bond yields moved higher as the BOJ considers tightening monetary policy due to inflation being above its 2% target for over 19 months. Market bets show a 45% chance of the BOJ increasing rates this month. Weak demand at a 30-year Japanese government bond auction prompted the BOJ to step in with unscheduled purchases. The Japanese yen also strengthened against the dollar. Investors are also watching U.S. jobs data and the possibility of rate cuts by the Federal Reserve.

Public Companies: Bank of Japan (BX:TMUBMUSD02Y), Tickmill Group (), Deutsche Bank ()
Private Companies:
Key People: Ryozo Himino (Deputy Governor), Kazuo Ueda (Governor), James Harte (Analyst at Tickmill Group), Henry Allen (Strategist at Deutsche Bank)

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Factuality Level: 7
Justification: The article provides information about the rise in bond yields and the factors driving the market. It includes quotes from analysts and officials, as well as data on bond yields and market reactions. However, the article does not provide a comprehensive analysis of the topic and could benefit from more context and explanation.

Noise Level: 3
Justification: The article provides relevant information about bond yields and the potential tightening of monetary policy by the Bank of Japan. It includes quotes from analysts and officials, as well as market reactions. However, it lacks in-depth analysis and does not provide actionable insights or solutions.

Financial Relevance: Yes
Financial Markets Impacted: Bond markets, specifically the 2-year, 10-year, and 30-year Treasury yields

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the rise in bond yields, specifically the 2-year, 10-year, and 30-year Treasury yields, due to concerns about the Bank of Japan tightening monetary policy. There is no mention of any extreme event or its impact.

Reported publicly: www.marketwatch.com