BOJ Said to Be Concerned Japan Bond Market Ignores Inflation
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Bank of Japan officials are increasingly concerned the nation’s bond market is failing to reflect emerging inflation, raising the risk of a sudden surge in yields, according to people familiar with the matter.
Japan’s benchmark 10-year government bonds yield 0.615 percent, little changed from March 2013, even after a jump in the consumer-price inflation rate of almost 2.5 percentage points since then. The yields have been held down by the BOJ’s own purchases, part of its unprecedented monetary stimulus unleashed by Governor Haruhiko Kuroda a year ago.