Intriguing RV graphs: Will curbing JGB supply reverse rise in 10yr JGB yield?
Key points
Pronounced rise in 10yr JGB yield; some anticipating BoJ will halt JGB purchase reductions or MoF will reduce issuance of 10yr JGBs
Even if such measures to improve supply/demand were implemented, still looks difficult to resolve current 10yr JGB yield rise driven by concerns about the BoJ falling behind the curve
Unlike super-long JGB situation this time last year, the ongoing rise in 10yr JGB yield cannot be attributed to reduced liquidity, supply/demand