Reported 11 months ago
Investors are bracing for potential increases in yields and market volatility in Japan's bond market as the Bank of Japan contemplates cutting its massive debt holdings. Speculation arises as the BOJ bought the lowest amount of government bonds since 2013 last month, with predictions suggesting a reduction in buying is on the horizon. This uncertainty has led to roller-coaster movements in benchmark 10-year yields, raising concerns and contributing to elevated implied volatility on debt futures. Analysts are adjusting their rate hike forecasts, while the central bank's policy changes are closely monitored to assess their impact on debt prices and market functioning.
Source: YAHOO