Yields will have a bias to rise as concern about an inflation bulge is reignited. A rate increase in March is almost a done deal and there's a chance for another move in May.
Unless the market can get a firm perception that the US Fed is ending its interest rate hike cycle, the ongoing weakness of the yen may not come to an end.
I didn't expect 5 percent yields at all, it's a little bit overdone. In the short-term we're likely to see a rebound.
The scale of victory was a surprise and that had a positive impact on Japanese stocks. There will be a bigger pull to buy Japanese assets over foreign bonds and stocks.
The market is more inclined to the perception that US interest rates will rise further.
Judging from fundamentals for the yen, including strong share prices and relatively positive economic data, the recent fall of the yen is apparently overdone.
On the other hand, it is now believed that the Bank of Japan will hold interest rates, in effect, at zero for a prolonged period because of strong political pressure.
We are seeing dark clouds on the horizon because of slowing housing markets. The inverted yield curve could be a sign of a slowdown in the economy. Treasuries yields are unlikely to rise.
The dollar's gains were capped around the recent peak level of 119.39 yen, because this level is also a key resistance level on charts.
The dollar's gains today were capped around the recent peak level of 119.39 yen, because this level is also a key resistance level on charts.
