Japan’s 10-year government bond yield rose 2.5 basis points to 0.46% today, the highest level since April 28.
Data on Friday showing Japanese wages rose at the fastest pace in nearly 30 years may prompt the Bank of Japan to take action at its July 27-28 meeting.
BOJ Governor Kazuo Ueda has been dovish in his messages to markets, telling an ECB forum last month that if the BOJ is “reasonably certain” that inflation will accelerate into 2024, the central bank will have strong reasons to change. Monetary Policy.
Naomi Muguruma, senior market economist at Mitsubishi UFJ Morgan Stanley Securities, said: “It is unclear what the BOJ will wait before deciding to adjust the YCC. It seems that the most important factor is the BOJ’s confidence in future price movements, but It’s vague and we can’t quantify their level of confidence.”
Muguruma expects the Bank of Japan to wait until October to raise the cap on 10-year government bond yields.