Japan’s 10-year government bond yield rose Monday from a two-month low, Reuters reported, as investors approached policy decisions this week that could shape rate expectations in Japan and the United States.
Reuters reported that the 10-year yield gained 1.5 basis points to 2.810%. The two-year yield rose 2.5 basis points to 1.885%, while the five-year yield added three basis points to 2.250%.
Reuters linked late-week bond buying to investor concern after technology stocks declined. That buying brought benchmark Japanese government bond yields to their lowest levels in two months, the outlet reported. An earlier EconoTimes report on Japanese bond yields after a U.S. technology-stock selloff covered a separate decline.
The Bank of Japan (BOJ) meets Oct. 29-30. Its policy board voted 7-2 in September to set the overnight call rate at around 1.25%, effective Sept. 24. The BOJ said it would continue raising the policy rate, with the timing and pace depending on economic activity, prices and financial conditions. It said underlying consumer price inflation was nearing its 2% target and could rise above it. The bank also cited wages, price-setting behavior and inflation expectations among factors it was monitoring.
Reuters reported that the BOJ was expected to leave rates unchanged this week. Analysts polled by Reuters saw a possible increase to 1.5% in December; both are expectations, not announced decisions.
The Federal Open Market Committee (FOMC) meets Oct. 27-28. In September, it raised its target range by 25 basis points to 3.75%-4.00%. A Reuters poll conducted Oct. 16-20 found 94 of 100 economists expected no change this week, while all 100 expected an increase in December. Neither central bank had announced its October decision as of Monday. The Fed meets first, followed by the BOJ on Oct. 29-30.
