In the bond market on the 13th, long-term interest rates exceeded the upper limit of 0.5% raised by the Bank of Japan last month for the first time, rising to 0.545% for the first time in about seven years and seven months.
Against the backdrop of the speculation that the Bank of Japan will revise its monetary policy further following last month's move, the market has been selling government bonds, increasing upward pressure on interest rates.
Japanese government bonds are sold on the 13th, and the yield of 10-year government bonds, which is a representative indicator of long-term interest rates, rose to 0.545%. Did.
It's been about 7 years and 7 months since June 2015 that long-term interest rates hit 0.545%.
On the 20th of last month, the Bank of Japan revised its large-scale monetary easing measures and raised the upper limit of the fluctuation range of long-term interest rates to about 0.5%, but long-term interest rates will exceed this upper limit after the Bank of Japan revised its policy. It is the first time.
The rise in long-term interest rates was due to the growing movement to sell government bonds as the Bank of Japan might further revise its monetary policy and allow interest rates to rise further, which put upward pressure on interest rates. is rising.
In response, the Bank of Japan announced that it will temporarily purchase a large amount of government bonds with a wide range of maturities to curb rising interest rates.
Furthermore, the Bank of Japan has said that it will continue to carry out "limit operations" to purchase unlimited 10-year government bonds at 0.5%, and the battle with the market is intensifying.
A market insider said, ``The market is paying attention to what kind of response the BOJ will take at the monetary policy meeting held next week.''