The current yield level is attractive enough and we can expect some buying. Additional evidence to show the economy is expanding, or consumer prices are rising, is necessary for bond yields to reach a higher range.
People sold bonds excessively the past several days and yields became high enough to attract buyers. Declines in stocks are giving people a chance to pay more attention to the value of bonds.
Two percent is not a ceiling for 10-year yields in Japan as deflation ended and the economy is expanding.
Some financial institutions believed Fukui would delay the action but the government can't stop him. It shocked some investors and they finally decided to cut their losses.
Strong figures on growth and inflation will reinforce expectations of higher Fed rates, supporting the dollar. Fed policy is now more and more data dependent.
This is a very good sign for the economy. It's helpful for the yen.
The environment is becoming unfavorable to bonds. I don't think the auction will be good.
Yields won't gain much after the policy shift because the central bank won't keep tightening monetary policy.
A decline in stocks will probably encourage investors to buy bonds.
Treasury yields will go higher as investors are concerned about inflation. Money is going into commodities to chase higher returns and that is adding to inflationary pressures.
