Why Rates on Ultra-Long Gov’t Bonds Hit Record Levels

Treść źródłowa

Source: http://www.mof.go.jp/english/jgbs/reference/interest_rate/index.htm Note: See text for explanationKey Points:The Bank of Japan will decide next Monday whether to raise the overnight rate 1% or wait until June to see how the Iran war and this season’s wage hikes pan outCPI figures for March will be announced on Friday, ahead of the BOJ meetingSome things to think about in that contextWhy did rates on 30- and 40-year Japan Government Bonds hit record levels earlier this year? How important is that?Some traders find this alarming; are they right?Some see the rates on the benchmark 10-year JGB spiking out of fear of Takaichi’s fiscal largesse; are they right? Or are rates just normalizingHow has the Iran war impacted interest rates and the ¥/$ so far?The memo below is available only to paid subscribers. Free subscribers can get instant access to the full text of this and all future Memos by subscribing for $50 per year. If you only want this Memo, you can subscribe for a month for $5, get the Memo, and then cancel. You will also receive any other memos I put out over the coming 30 days. Journalists desiring to cite this piece can write to me at rbkatz@rbkatz.com to obtain the full text. Free subscribers will continue to get the full text of my regular Posts. Read more