10-Year JGB Yield Hits 3.02%, 30-Year Hits 4.18%: as BOJ Tries to Halt Yen Collapse, Japan’s Bond Market Rises from YCC Grave
All monetary sins ultimately lead to the currency. There are no miracle exits for the BOJ.
Source: Wolf Street
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DW NOTE
The BOJ spent years insisting it could peg yields at zero through sheer will. Now the 10-year trades at 3.02% and the 30-year at 4.18% — market forces reasserting themselves after a decade of financial repression. The yen is collapsing because investors finally understand that a central bank cannot simultaneously defend its currency and its bond market when both are built on monetary fiction.