Here’s a snapshot of 10-year yields and 30-year yields for Japanese government bonds (JGBs):
The former is the more crucial one and is down roughly 3 bps to 0.641% currently. That’s a far cry from the sudden spike up to 0.80% earlier this month when traders took BOJ governor Ueda’s remarks out of context for a brief period.
The key level to watch for 10-year yields is the 1% threshold and it seems like we’re not quite going to get there just yet. But as the anticipation builds ahead of the spring wage negotiations in March to April next year, I would expect yields to trade closer to the pivotal level than where we are now; barring any further BOJ disappointments that is.
This article was originally published by Forexlive.com. Read the original article here.