Treasuries rose, pushing yields toward the lowest level this year, as tumbling Japanese bond rates and a sliding yen enhanced demand for U.S. debt.
Japan’s 10-year rate fell to a record 0.315 percent, and the yen weakened to 97.06 against the dollar, a level not seen since August 2009. Bank of Japan (8301) Governor Haruhiko Kuroda yesterday doubled the BOJ’s bond purchases to 7 trillion yen a month ($72.3 billion) as he seeks to fight deflation.
“Kuroda-san changed everything,” said Genzo Kimura, who helps oversee the equivalent of $43.4 billion as a bond investor in Tokyo at Sumitomo Mitsui Trust Asset Management Co. The yield on Japanese government bonds is “so low, it’s not attractive. I bought Treasuries this week,” he said.
Benchmark U.S. 10-year yields declined one basis point, or 0.01 percentage point, to 1.75 percent at 10:21 a.m. in Tokyo, according to Bloomberg Bond Trader data. The rate is two basis points away from the lowest level this year.
The price of the 2 percent note maturing in February 2023 rose 3/32, or 94 cents per $1,000 face amount, to 102 7/32.
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