A report from Jiji today indicates that the Bank of Japan may buy fewer bonds, which appears to overshadow Tokyo’s weak CPI today.
Five-year JGBs are up 2.5 basis points today and trading at their highest since 2011. Here is the long-term chart:
JPY 5 years
It’s probably not just domestic factors weighing on the situation, as global bonds have been selling off all week. Yet the situation currently appears to be the worst of all for Japan, with falling inflation, a weakened currency and higher borrowing rates.
cnbctv18-forexlive
