A gain in the Nikkei above 16,500 will test investors' nerves and lead them to hold off buying bonds, pushing up yields. |
A pullback in US Treasury prices was behind losses in JGB prices today. |
Bond prices got a boost from the fairly good outcome of today's two-year debt auction, while index-trackers actively purchased government debt paper, which supported the market. |
Deposits stopped growing and household money is heading increasingly to risk assets and will continue to do so as long as Japanese interest rates are zero. |
Falling stocks and a rising yen raises speculation among investors the central bank will avoid saying anything to add to an outlook for higher rates. It will encourage investors to buy bonds. |
Gains in stocks will help push down bonds and I don't think investors will aggressively buy after yesterday's rally. |
In addition a report that Japanese banks stepped up the reduction in their JGB holdings also weighed on sentiment here. |
Many investors are reluctant to trade actively before the central bank starts its two-day meeting Wednesday. |
Market expectations appear to be accelerating and unless the central bank takes action soon, it may lose the market's confidence. |
Market participants are reluctant to take fresh positions before the release of Jan US non-farm payroll data. |
Market participants are reluctant to take fresh positions before the release of Jan US non-farm payroll data. In addition a report that Japanese banks stepped up the reduction in their JGB holdings also weighed on sentiment here. |
Once a round of purchases by investors targeting bargains wanes, JGB prices will likely fall further going forward. |
People are paying attention to what Fukui will say. It's hard to find a reason to buy bonds as yields are rising. |
The Bank of Japan's decision was well anticipated. Most measures it plans to implement appear to be within market expectations. |
The bond market reacted directly to the equities market, like a textbook example. |