The bond market is expected to fall on the 7th. Stronger-than-expected economic data in the US market has raised expectations for additional interest rate hikes, continuing the trend of long-term interest rates rising to the 4% level for the first time since March. Bank of Japan Deputy Governor Shinichi Uchida’s interview with some media outlets was not surprising, and some said the impact on the market would be limited.
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Kazuhiko Sano, chief strategist at Tokai Tokyo Securities, warns that long-term US interest rates may not stop at 4% if the U.S. employment figures released on Wednesday turn out to be very strong.
The expected range for the yield of the new 10-year 371st issue is 0.415% to 0.43% (0.405% on the 6th), and the September contract month futures are 148.19 yen to 148.48 yen (148.57 yen on the 6th). money).
In an interview with the morning edition of the Nihon Keizai Shimbun on the 7th, Deputy Governor Uchida said that while he would continue to use yield curve control (YCC) for the time being, he said, “I am strongly aware that it is affecting the functioning of the market. There is,” he said.
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Sano said he did not give any commitments about the policy management policy of the monetary policy meeting in July, and said there would be no surprises.
In futures night trading, the September contract closed at 148.36 yen, down 21 yen from the daytime closing price on the 6th.
Bank of Japan operation
Limit price operation to purchase unlimited 10-year JGBs at a yield of 0.5% will be implemented every business day. The same operation will continue for the cheapest issue eligible for delivery (Cheapest), which is used for settlement of bond futures. Operation bid amount is zero
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2023-07-06 22:45:00
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