Bond yields hit multi-month highs on heavy supply and BOJ speculation
London — Major government bond yields hit multi-month highs on Wednesday on heavy supply and as investors re-evaluated the likelihood of continued easy-money policies by the world’s major central banks. Speculation that the Bank of Japan (BOJ) could start to withdraw its stimulus this year after it trimmed bond purchases this week put upward pressure on bond yields across the board and sent the yen to its highest level against the dollar in over a month. The 10-year US treasury yield hit 2.57% for the first time since March last year. That has caused the two-to 10-year US yield curve to steepen to 59 basis points — a jump of 10 basis points this week. Most eurozone government bond yields were one to two basis points higher at the open. Germany’s 10-year bond yield hit its highest level since the October European Central Bank (ECB) meeting when policy makers first announced the extension of its bond-buying scheme, with one trader citing heavy supply as the trigger for the move. "So m...
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