Japanese 10-yr yield above 0.10%, will BOJ boost purchases?

The sell-off in the global bonds is weighing over the Japanese Government Bonds (JGBs) this Friday morning in Asia. 

The yield on the benchmark 10-year JGB shot up to 0.109% in Asia. This is the highest level since late January. 

As per the yield curve control policy, the Bank of Japan (BoJ) will have to increase JGB purchases to keep the 10-year rate close to zero. It remains to be seen if the central bank steps up its purchases. The pressure on the BoJ would mount if yesterday’s global bond sell-off continues today. 

BoJ may also come under pressure to revise its yield curve control target higher if the global bond sell-off worsens.