Friday, May 25, 2007

Two-year JGB yield at decade high on BOJ worries

(Reuters) - Since the BOJ ended its super-loose monetary policy in March
2006, it has raised interest rates twice to a decade-high 0.5
percent, and many market players expect a third rate hike to 0.75
percent as early as the July-September quarter.




Despite such views, the market has been supported by buying
from public funds, pension funds and other institutional
investors which regularly allocate a certain amount of funds to
JGBs, helping to cap a rise on yields.


Read more at Reuters.com Bonds News

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