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The BoJ meeting is the first in a series of meetings of the central bank this week
US Treasury bond yields were closed Monday at the same place where they started the day, because that prudence prevailed the market before the decision of monetary policy that the Bank of Japan will announce Tuesday.
Governor Haruhiko Kuroda said the central bank bought Japanese sovereign bonds for 1.64 billion yen ($ 14.770 million) to stop a rise in yields, driven by rising expectations that the BoJ will adjust its policy ultra-expansive monetary policy.
The amount is the highest that the BoJ buys to manage its yield curve and the third such operation in one week. Prior to interventions, bond performance at 10 years had its largest increase in more than a year
An adjustment in Japanese monetary policy would increase returns on Japanese debt, which would increase returns. Treasury bonds, which have been an alternative to Japanese bonds for investors of this origin in search of better returns.
If the yield of Japanese sovereign debt rises, Treasury bills will have to offer a higher premium to compete. In addition, while weak global bond yields have anchored Treasuries, higher Japanese yields may increase the yield curve.
US 10-year bond yield reached 2.99% Monday morning, its highest level since June 13, before dropping to 2.98% in the afternoon, less than two points basic over its opening.
The rating's performance at 2 The US dollar has changed little since Friday's close at 2.67%, while the 30-year bond has risen by a little more than a year ago. a point compared to 3.11% Friday.
The BoJ meeting is the first of a series of central bank meetings this week. On Wednesday, the Federal Reserve will conclude a two-day meeting and the Bank of England will issue a statement on Thursday.
The Fed should not announce any changes in interest rates. But we are waiting for the interpretation of the mixed figures of the gross domestic product of the second quarter.
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