Japan’s 20-year yield rises above 1% for first time since 2015

Japan’s 20-year yield rises above 1% for first time since 2015
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(Sept 27): Japan’s 20-year bond yields rose to the highest level since 2015 as global debt markets come under pressure from expectations of further monetary tightening.

Yields on the securities climbed by 2.5 basis points to 1.015%. So-called super-long JGBs are more vulnerable to moves in overseas bonds as they are outside the Bank of Japan’s curve control policy aimed at capping benchmark 10-year yields at an upper limit of 0.25%.

The rising yields prompted the BOJ to conduct unscheduled bond purchase operations for longer maturities. It said it will buy ¥150 billion of 5-10 year bonds and ¥100 billion of 10-25 year bonds. The BOJ has announced unlimited debt-purchase operations at fixed rates for 10-year bonds, but not for super-long debt.