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BOJ Gets Bond-Market Breathing Room From Fed Relief Rally
A relief rally in US Treasuries has spilled over into Japan’s under-pressure bond market ahead of its key central bank policy decision Friday. Bond futures recovered from deep losses Wednesday as benchmark Treasury yields slumped by almost 20 basis points overnight. Speculators had pushed the contracts to the brink of a trading halt, as the Bank of Japan struggles to convince markets its super-easy policy is sustainable as the Fed aggressively hikes. With the Federal Reserve meeting perceived as less hawkish than expected, traders now turn their attention to the BOJ, which has ramped up bond purchases this week in ... (full story)