In the JGB market at the start of the week, the closing yield on the newly issued 10-year JGB, a benchmark for long-term interest rates, rose to 2.805%. Against the backdrop of the main opinions released from the BOJ’s July policy meeting, expectations grew that the pace of rate hikes would accelerate, prompting selling of JGBs and driving yields higher.
In the JGB market on Monday the 10th, the closing yield on the newly issued 10-year JGB (383rd issue, 2.7% coupon) was 2.805%, up 0.01 percentage point from the previous weekend.
After the BOJ released the main opinions expressed at its July Monetary Policy Meeting, JGBs were sold on expectations that the pace of rate hikes would accelerate, pushing yields higher.
The move was reflected in long-term interest rates, heightening market participants’ caution over future interest rate fluctuations.