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Treasuries Rally With Japan Bonds as MOF News Boosts Sentiment

(Bloomberg) -- A rally in Japan’s bond market has spilled over to US Treasuries, as signs that Japanese authorities may look to re-establish stability after a tumultuous period fuel a spate of bond buying across global markets.Most Read from BloombergNY Private School Pleads for Donors to Stay Open After Declaring BankruptcyUAE’s AI University Aims to Become Stanford of the GulfNYC’s War on Trash Gets a Glam SquadPacific Coast Highway to Reopen Near Malibu After January FiresYields on 10-year Tr

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Japan's super-long bond yields plunge on issuance cut speculation

TOKYO (Reuters) -Yields on super-long Japanese government bonds (JGBs) fell sharply on Tuesday after Reuters reported the country's finance ministry might issue fewer of these bonds. The 30-year JGB yield fell sharply following the report, dropping 18.5 basis points (bps) to 2.85%. The 20-year JGB yield fell 16.5 bps to 2.34%, after trading as high as 2.44%, while the 40-year yield sank 24 bps to 3.295%, after touching a session high of 3.435%.

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Japan to consider trimming super-long bond issuance, sources say

TOKYO (Reuters) -Japan will consider trimming issuance of super-long bonds in the wake of recent sharp rises in yields for the notes, two sources told Reuters on Tuesday, as policymakers seek to soothe market concerns about worsening government finances. Super-long bond yields slumped on the report, pushing down the Japanese yen and U.S. Treasury yields along the way, as markets cheered Tokyo's readiness to arrest spikes in long-term interest rates. The Ministry of Finance (MOF) will consider tweaking the composition of its bond programme for the current fiscal year, which could involve cuts to its super-long bond issuance, said the sources who had direct knowledge of the plan.

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