Intriguing RV graphs: Driver behind 10yr JGB yield topping 1.9%
Key points
- Speculation about monetary policy, not fiscal policy, driving 10yr JGB yield higher; clearer trend following supplementary budget.
- Hard to call this a “Truss-style” chaotic rise in government bond yields; JGB yields driven higher by pricing in “high-pressure economy”-style monetary policy.
- Growing interest in BoJ’s Dec meeting; forex market reactions warrant attention along with messaging about interest rate hiking pace/terminal rate.