JGB Market Compass

Causes of unexpected recent decline in JGB yields

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Causes of unexpected recent decline in JGB yields

Key points
  • 10-year JGB yield plunged unexpectedly starting in November due to two main factors

 

  • First was shift in global macro strategies by hedge funds and other foreign investors in response to FOMC meeting on November 1

 

  • Second was move by foreigners to close out trades targeting YCC following further policy revisions at October 31 BoJ meeting

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