In the New York bond market on the 2nd, caution was heightened against accelerating monetary tightening in the United States, and long-term interest rates temporarily rose to the 3% level for the first time in 3 years and 5 months.
The rise in long-term interest rates in the United States has contributed to the rapid depreciation of the yen and the dollar in the foreign exchange market.
In the New York bond market on the 2nd, US government bonds were sold as the FRB = Federal Reserve Board, the central bank of the United States, became more cautious about accelerating monetary tightening at a monetary policy meeting to be held from the 3rd of the following day. The yield on 10-year government bonds, which is an indicator of long-term interest rates, temporarily rose to the 3% level.
It is the first time in 3 years and 5 months since December 2018 that the long-term interest rate has reached the 3% level.
In the foreign exchange market, the yen is depreciating and the dollar is appreciating rapidly because the dollar yield can be expected due to the rise in long-term interest rates in the United States. It is traded at a central level.
Long-term interest rates in the United States have been below 1% at one point since the Fed introduced a zero interest rate policy and quantitative easing measures in March, but have since been on the back of the recovery of the US economy and inflation. It started to rise and was in the 2% range in February.