Japanese bond yield rises nearly 70% after BOJ signals tighter monetary policy

Yields on 10-year Japanese government bonds rose by almost 70% after the Bank of Japan (BOJ) announced a widening of the bond yield spread. Investors see this as a signal to tighten monetary policy. The yield on 10-year Japanese government bonds rose from 69.73% to 0.435%.

The BOJ extended its 10-year bond yield curve from -0.25% to +0.25% to a range of -0.5% to +0.5%, surprising the market. The BOJ had stuck to its ultra-low interest rate policy for a long time.

Investors believe that the change in monetary policy indicates that the BOJ is looking to tighten monetary policy in line with central banks around the world, which have raised interest rates several times recently.

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