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28 May 2013
Flash: BoJ appear unperturbed by rising JGB yields - BTMU
FXstreet.com (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ notes that BoJ Board member Miyao also spoke overnight and didn’t appear overly concerned by rising JGB yields which have been driven by “higher yields in the US” and “domestic stock market gains”.
He continues to note that yields will face both upward and downward pressure going forward with BoJ easing to put downward pressure upon yields in Miyao’s opinion. Further, the BoJ will continue to monitor bond market developments carefully. Hardman believes that the weaker yen has helped to raise the value of Japan’s net foreign assets by 11.6% to JPY296.3 trillion in 2012, the largest annual increase since 2009. Additionally, he adds that Japan’s net portfolio investment and direct investment positions increased by JPY19.8 trillion and JPY15.3 trillion in 2012.
He continues to note that yields will face both upward and downward pressure going forward with BoJ easing to put downward pressure upon yields in Miyao’s opinion. Further, the BoJ will continue to monitor bond market developments carefully. Hardman believes that the weaker yen has helped to raise the value of Japan’s net foreign assets by 11.6% to JPY296.3 trillion in 2012, the largest annual increase since 2009. Additionally, he adds that Japan’s net portfolio investment and direct investment positions increased by JPY19.8 trillion and JPY15.3 trillion in 2012.