Capital Markets

Markets expect some BOJ action on the 10-year yield at minus 0.1%.

Falling long rates put BOJ on the spot

TOKYO -- Japanese long-term interest rates continue to sink into negative territory after the Bank of Japan said last week that it aims to keep them around zero, raising the question of if and when the central bank will act to halt the slide.The benc...

  • 40-year JGBs still in demand after BOJ decision

    TOKYO -- The auction of 40-year Japanese government bonds went smoothly Tuesday, a sign of waning concern that the Bank of Japan would drastically reduce its buying of ultralong debt.The Ministry of Finance auction marked the first since its decision...

  • Japan's medium-term yields fall on rate cut outlook

    TOKYO -- The view that the Bank of Japan will likely take interest rates further into negative territory pushed down yields on newly issued medium-term Japanese government bonds in Tuesday trading here.Two-year JGBs sank as far as 4.5 basis points, p...

  • Japan IPOs seen down 10% through September

    TOKYO -- A total of 56 companies went public or plan to do so in the January-September period, a drop of roughly 10% from 62 through the first nine months of 2015 for Japan's first decline in initial public offerings in seven years.The benchmark Nikk...

  • Investors test boundaries as BOJ readies yield controls

    TOKYO -- Financial market players are testing the Bank of Japan's resolve to keep long-term interest rates near zero as part of a new monetary policy scheme, eager to see how low yields can really go.The central bank on Wednesday introduced a new pol...

  • Japan big banks retreat further from government bond market

    TOKYO -- Major Japanese banks traded the least amount of bonds on record in August as the Bank of Japan's unprecedented asset-purchasing program continued to grind down liquidity in the government debt market.Large banks, including three megabanks --...

  • Commentary

    Thomas Mayer -- Why the Fed is spinning in circles

    Once upon a time, the chairman of the Federal Reserve Board was called "The Maestro" because he ruled financial markets. Market participants loved him because he gave them direction and rushed to protect them whenever prices declined. No longer. Toda...

  • Japan mutual fund investors embrace longer-term approach

    TOKYO -- Japanese individuals are clinging to investment trusts for longer periods, likely the result of the tax-free NISA program that promotes extended holdings.Retail investors held onto investment trusts for an average of roughly 3 1/2 years as o...

  • Issues beset China's onshore bond market, says rating agency

    HONG KONG -- Beijing's liberalization of the multitrillion onshore bond market was a vital step in the internationalization of the yuan but a local rating agency said technical issues are hampering the participation of foreign institutional investors...

  • J-Power, Toho Gas shelve superlong-bond floats

    TOKYO -- Japanese utilities Electric Power Development, or J-Power, and Toho Gas are postponing plans to issue 30-year corporate bonds in the face of spiking long-term yields.Sharp rises in long-term rates "have made it difficult to issue the bonds a...

  • September US rate hike cannot be ruled out

    TOKYO -- Investors are paying keen attention to the Japanese and U.S. central banks' monetary policy meetings slated for Sept. 20-21. With the central banks unable to communicate with markets as they expected, bond, foreign exchange and stock markets...

  • Winds of policy change lift long bond yields

    LONDON -- Yields on long-term bonds are climbing worldwide as investors sense the potential for monetary policy shakeups, including cutbacks on easing.Yields on 10-year German bunds, the eurozone's long-term benchmark, briefly jumped to 0.06% or so M...

  • Asia shares, bonds spooked by central bank risks

    SYDNEY (Reuters) -- Asian shares skidded on Monday with investors rattled by rising bond yields and talk the Federal Reserve might be serious about lifting U.S. interest rates as early as next week.Reports that the Bank of Japan was considering ways ...

  • Japan's corporate pensions shifting from stocks to bonds

    TOKYO -- Japan Inc.'s pension plans are cutting back their exposure to equities amid low returns and shifting to bonds out of a lack of better options.Some 80% of major corporate pension plans reduced portfolio weightings in stocks over the one year ...

  • BOJ deputy chief raises concerns about easing drawbacks

    TOKYO -- Bank of Japan Deputy Gov. Hiroshi Nakaso discussed the side effects of monetary easing Thursday in a speech here and suggested that the central bank could rethink its approach at this month's policy board meeting.Nakaso noted "growing pressu...

  • Japan to bulk up 40-year bond issuance

    TOKYO -- Japan looks to float 400 billion yen ($3.92 billion) more in 40-year bonds this fiscal year than planned earlier, aiming to lock in low financing costs for the long haul.The Ministry of Finance will propose the change at a meeting Thursday a...

  • Weary of negative rates, UBS looks east

    ZURICH -- In its 154-year history, Swiss financial giant UBS has had its ups and down. Surviving the 2008 financial crisis was certainly one of the low points, when it had to rely on assistance from the Swiss government and the Swiss National Bank. T...

  • MUFG to bolster capital with green bonds

    TOKYO -- Striving to meet stricter capital requirements for banks, Mitsubishi UFJ Financial Group plans to raise up to $3 billion through bonds specifically aimed at financing renewable energy projects. The first batch of bonds, worth $500 million, i...

  • Why TIBOR remains positive despite negative-rate policy

    TOKYO -- Over six months have passed since the Bank of Japan adopted a negative interest-rate policy. Japan's long-term interest rates are now in negative territory, but banks' lending rates have remained positive on the back of positive benchmark lo...

  • JGBs pare losses after Kuroda comments, yields ease off 5-month high

    TOKYO (Reuters) -- Japanese government bond prices pared losses on Monday after Bank of Japan Governor Haruhiko Kuroda signalled his readiness to ease monetary policy further, which kept a rein on bond yields that hit five-month highs earlier in the ...