3 Feb 2015
Japanese 10yr yield rises to match German 10yr yields – BBH
FXStreet (Barcelona) - Marc Chandler, Global Head of Currency Strategy at BBH, shares that 10yr JGB yields has risen 8bp, the highest gain since March 2013, to match German 10yr bunds, due to a poor bond auction in Japan.
Key Quotes
“For the first time, the German 10-year bund yield has fallen below the 10-year Japanese government bond yield.”
“Ironically, in the low interest rate world, what has actually taken place is that the JGB yield has risen above the German yield.”
“The 10-year bund yield is up 2 bp to 33 bp today, while the 10-year JGB yield has risen almost 8 bp to nearly 36 bp. This is the largest yield rise in Japan since May 2013.”
“The increase in JGB yields comes on the back of a poor bond auction in Japan. The sale of JPY2.4 trillion JGBs saw weak reception (bid-cover of 2.68 vs 3.7 average over the last ten auctions.”
“The tail (difference between low bid and average bid) exploded to 0.45 from 0.03. This is the largest tail for a 10-year auction since 2003, according to Dow Jones data.”
“Low yields and increased volatility have been cited behind the poor auction."
Key Quotes
“For the first time, the German 10-year bund yield has fallen below the 10-year Japanese government bond yield.”
“Ironically, in the low interest rate world, what has actually taken place is that the JGB yield has risen above the German yield.”
“The 10-year bund yield is up 2 bp to 33 bp today, while the 10-year JGB yield has risen almost 8 bp to nearly 36 bp. This is the largest yield rise in Japan since May 2013.”
“The increase in JGB yields comes on the back of a poor bond auction in Japan. The sale of JPY2.4 trillion JGBs saw weak reception (bid-cover of 2.68 vs 3.7 average over the last ten auctions.”
“The tail (difference between low bid and average bid) exploded to 0.45 from 0.03. This is the largest tail for a 10-year auction since 2003, according to Dow Jones data.”
“Low yields and increased volatility have been cited behind the poor auction."