Tuesday, September 17, 2013
10-Year JGB Yield Hits 2-Week Low
TOKYO (NQN)--The yield on newly issued 10-year government bonds, the benchmark for long-term interest rates, briefly hit 0.715% Tuesday morning, its lowest level in about two weeks.
The overnight fall in U.S. long-term rates in New York prompted investors to buy domestic bonds in Tokyo. With former U.S. Treasury Secretary Lawrence Summers dropping out of the race for the next Federal Reserve Board chairman, there is a growing view that the U.S. central bank will continue its monetary easing policy.
An official at SMBC Nikko Securities Inc. said the reaction to the news of Summers' withdrawal has been huge because he was tipped as the probable next Fed chief in media reports last weekend.