Japan to launch new floating-rate bonds as BOJ eyes rate hikes

From channelnewsasia.com

Japan will introduce a new type of floating-rate note that helps investors mitigate the risk from rising bond yields, two government sources told Reuters, a sign policymakers are gearing up for further interest rate hikes. The move is part of the government's efforts to ensure it can keep selling debt smoothly, even as the Bank of Japan (BOJ) trims its huge bond buying and eyes more hikes to near-zero interest rates. A tapering of bond buying and rate hikes by the central bank both work to push down bond prices and prop up yields. Interest rates and bond prices have an inverse relationship. The new note will have a ... (full story)