As the consumer price index for the 23 wards of Tokyo announced on the 10th rose more than expected by the market, upward pressure on interest rates increased in the bond market, and long-term interest rates were capped by the Bank of Japan on the 10th following the end of last week. I put 0.5% to do.
On the 20th of last month, the Bank of Japan revised monetary easing measures to keep long-term interest rates low, and the interest rate of 10-year government bonds, which has become a representative indicator of long-term interest rates, exceeded the upper limit of about 0.25% so far, to 0.5%. I decided to allow it to rise to a degree.
Tokyo's 23 wards consumer price index, released on the 10th, rose 4%, more than market expectations, prompting speculation in the bond market that the Bank of Japan may revise its policy further. This led to the sale of government bonds.
Since interest rates rise when government bonds are sold and prices fall, long-term interest rates have been set at 0.5%, the upper limit of the fluctuation range, for two consecutive business days on the 10th following last weekend.
A market insider said, "Although the BOJ has emphasized that last month's policy revision was not a tightening of monetary policy, the market believes that the BOJ may move to revise monetary easing again as prices continue to rise in Japan as well. There is also a view that the movement to sell Japanese government bonds is increasing, and the situation where long-term interest rates are stuck at 0.5% is likely to continue."