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Japan 10-Year Yield Scales 13-Year High

· Exchange

Japan’s 10-year government bond yield climbed to around 1.1%, scaling its highest levels since 2011 as traders piled on bets that the Bank of Japan could normalize monetary settings further at its upcoming meeting later this month amid a sharply depreciating yen. The central bank indicated that a weak yen pushes up import costs, adding to inflationary pressures and hurting household consumption. The BOJ also previously announced that it will release a plan on winding down its bond buying program in July, spurring bets that it could shift from quantitative easing to quantitative tightening in the near future. Externally, Japanese yields tracked a rally in US Treasury yields amid rising odds of a second Donald Trump presidency which markets deem inflationary.

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