2023-10-01 22:31:00
Bond prices fell on the 2nd. The yield on the 10-year Treasury note hit a new high in 10 years. In addition to persistent speculation that the Bank of Japan will make early policy adjustments, there has also been a surge in selling due to concerns regarding the 10-year bond auction to be held on the 3rd. The passage of a stopgap budget bill until November 17 to avoid a government shutdown in the United States is supportive.
In the short-term economic observation survey (Tankan) published by the Bank of Japan, the business sentiment DI (Business Conditions Index) for large companies and manufacturers exceeded expectations, but the reaction was limited.
Business confidence of large manufacturing companies improves to +9, exceeding market expectations – Bank of Japan Tankan
Makoto Suzuki, senior bond strategist at Okasan Securities, said that while a pause in the rise in long-term interest rates in the U.S. and avoidance of a government shutdown will support the downside, there is also a sense of caution regarding the 10-year bond auction on the 3rd, so the upside is likely to be heavy. Predict.
December long-term government bond futures temporarily fell by 16 sen from the previous weekend to 144.80 yen.Newly issued 10-year bonds rose 1 basis point (bp) to 0.775%.
Bank of Japan operation
Limit price operations to purchase an unlimited number of 10-year government bonds at a yield of 1% will be carried out every business day.Same operations will continue for the cheapest issues eligible for delivery (cheapest) used for settlement of bond futures.
Related article
1696208099
#Bonds #fall #10year #bond #yield #hits #10year #high #Caution #Wednesdays #auction #Bloomberg