2-year JGB yields have now jumped up to 0.91% - its highest since 2008. Meanwhile, 5-year JGB yields have also shot higher to 1.20% - also its highest since 2008. This follows from the BOJ decision earlier, in which we saw policymakers Takata and Tamura dissented in favour of a 25 bps rate hike.
The overall decision was still a 7-2 majority in holding rates unchanged. However, is the dial starting to shift within the BOJ for their upcoming decisions?
Before today, a rate hike before the end of the year seems improbable for the BOJ. That especially as the US-Japan trade deal put a roadblock in front of the central bank's plans. The tariffs situation and the relative uncertainty is still one that the BOJ had previously reaffirmed in warranting a more cautious approach.
It's very rare to see BOJ policymakers break ranks like they did today. So, the question now is whether there is stronger feelings among the board in actually leaning towards a rate hike before next year? And if so, is today's push by Takata and Tamura enough to persuade others to join them in October or December?
Right now, traders are pricing ~47% odds of a 25 bps rate hike for October. And by December, there is roughly ~18 bps of rate hikes baked in. All of a sudden, the upcoming meetings look to be "live" ones. And that is keeping the yen firmer in the aftermath of the decision earlier.
We'll now have to wait on BOJ governor Ueda's press conference later to provide more clarity into their line of thinking. That will help to either shore up market odds and/or dissuade any overeager pricing.
This article was written by Justin Low at investinglive.com.Hence then, the article about short term jgb yields shoot higher as traders scramble to price in next boj rate hike was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( Short-term JGB yields shoot higher as traders scramble to price in next BOJ rate hike )
Also on site :
- Trump endorses Steven Hilton in California governor's race
- I Asked Dietitians What Women Over 50 Are Getting Wrong About Their Diets, and They All Said the Same 2 Things
- Massive night rallies across Iran as war enters sixth week (VIDEO)