Japan’s government bonds are set for the worst quarterly selloff in more than two decades as the central bank loosens its grip on the market.
That’s a reminder for investors that the nation’s debt market relies in part on support from public-sector institutions like the Bank of Japan to outperform global peers.
Just as investor concern that the BOJ will reduce easy money caused bonds to tumble this quarter, one institution that traders said may have triggered the late 1998 crash was the Ministry of Finance. “The significant deterioration in Japanese bonds’ performance this quarter shows once again the large influence that the public sector has over the market,” said Keisuke Tsuruta, a senior fixed-income strategist at Mitsubishi UFJ Morgan Stanley Securities Co. in Tokyo. “Speculation will likely strengthen that negative rates will come to an end next year, so the BOJ will remain in the driver’s seat in the bond market.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
UK Bonds Lead Global Selloff as Higher-for-Longer Bets Sink InUK government bonds led a global selloff as investors around the world come to terms with the prospect of a protracted period of tight monetary policy.
Lire la suite »
Pimco Sticks to Bullish Stance on Emerging Markets Amid SelloffPacific Investment Management Co. is standing by its bullish position on emerging markets, even as a rout in the asset class deepens on concern over global interest rates and the plight of China’s economy.
Lire la suite »
Gold's selloff doesn't change the long-term bullish outlookKitco News' general-interest stories takes a look at what is making headlines in the marketplace and how that is impacting precious metals prices
Lire la suite »
Wall Street Selloff Across Assets Rattles Risk-Parity QuantsA breed of quant investor that spreads bets across assets is reeling this week as the hawkish monetary era intensifies.
Lire la suite »
Bond Selloff Rattles Traders as Hedging Costs Hit 12-Month HighTraders are worried that the US bond market’s recent selloff may have further to go.
Lire la suite »
Stock futures tick higher after steep selloff: Stock market news todayStocks looked set to take a breather on Wednesday from steep losses fueled by concerns about economic impact of 'higher for longer' rates.
Lire la suite »