2023-04-16 22:35:00
Bond prices are expected to fall.Not as weak as feared in the USEconomic indicators such as retail sales and hawkish remarks by financial officials have reignited speculation regarding an interest rate hike, continuing the trend of falling US bond prices.The super long-term zone last weekendIt is sold, and the loosening of supply and demand is also expected to be a factor to push down the market.
June futures fell in overnight trading. Against the backdrop of the drop in US Treasury market prices, selling became dominant, and the level was temporarily lowered to ¥147.44. The trading closed at 147.57 yen, 11 yen lower than the closing price during the daytime trading on the 14th.
Perspectives of market participants
Makoto Suzuki Senior Bond Strategist at Okasan Securities
- Today’s bond market is likely to see a heavy topside following last weekend’s rise in US interest rates.US interest rate hike speculation is in the mood once more
- However, there are no particular factors, and the situation is such that monetary policy events in various countries starting from the Bank of Japan’s policy-making meeting next week are expected, so it is likely that the price will fluctuate slightly.
- In the super long-term zone, the topside is heavy due to the 20-year JGB auction on the 20th.The auction will likely explore investor demand at current yield levels.
- The expected range for the yield of the newly issued 10-year 370th issue is 0.455% to 0.465% (0.455% on the 14th), and the June contract month futures are 147.50 yen to 147.70 yen (147.68 yen on the 14th). )
Bank of Japan operation
- We carry out unlimited purchases of 10-year government bonds at a yield of 0.5% every business day.Continuing the same operation targeting the cheapest delivery-eligible issue (Cheapest) used for settlement of bond futures
- Remarks: Bank of Japan: JGB outright purchase operation, limit price operation bidding amount is zero
background
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