Long-term interest rates rise, uncertainties about BOJ policy inspections, and offers low for five years sell-Bloomberg

Photographer: Kiyoshi Ota / Bloomberg

Long-term interest rates are on the rise. Bank of Japan Deputy Governor Masayoshi Amamiya tolerates a certain amount of ever-increasing fluctuations in long-term interest rates the day before.In response to his comments, the background was that uncertainty grew even stronger over the policy inspection that will take place at the monetary policy decision meeting next week. Sales have been boosted by the slow results of the 5-year government bond auction that took place that day.

Nomura Securities’ chief interest rate strategist Takenobu Nakajima noted that volatility (market volatility) increased due to comments from Vice President Amemiya in a situation where he did not want to increase his holdings near the end of the fiscal year, which that made it difficult for investors to work. at. The results of the 5-year bond auction showed weak demand, with the offer-coverage ratio being the lowest since March last year.

Vice President Amemiya spoke online at the Yomiuri Economic Forum and, in a question-and-answer session, said that long-term interest rates “can go up and down further as long as the relaxation effect is not affected.” Kuroda told the House Finance and Finance Committee on the 5th that he “does not believe there is a need to extend tolerance to fluctuations in long-term interest rates.”I was making a statement.

Harumi Rokka, senior market economist at Mitsubishi UFJ Morgan Stanley Securities, noted that “the minds of market participants are confused” when the deputy governor of the Bank of Japan sent different information. Investors have no choice but to reduce risk because they don’t know which one to take into account on whether long-term interest rates will fluctuate.

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