Recession risk burns bond vigilantes fighting against Bank of Japan
JGB rally has left short-sellers with paper losses as Kuroda holds the line
Under Haruhiko Kuroda, the Bank of Japan has stayed the course on monetary easing despite rising inflation. (Photo by Uichiro Kasai)
TOKYO -- U.S. and European recession fears have given the Bank of Japan a leg up in its tug of war with traders that have bet against Japanese government bonds.
The benchmark yield on newly issued 10-year JGBs on Monday touched 0.18%, the lowest since March 10. Bond prices rise when yields fall.
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