JGBs Fall After Hawkish BOJ Member Calls for Flexible Rate Hikes

Dow Jones
09/02

0242 GMT - JGBs fall in price terms in morning Tokyo trading after hawkish BOJ policy board member Hajime Takata called for flexible rate hikes. In a speech to business leaders in Hokkaido, Takata said this year represents a "regime change," in which rate hikes aren't carried out at a fixed pace, but instead will be "conducted in a nimble and data-dependent manner in response to the domestic price and economic environment, particularly reflecting overseas trends." Takata, perceived as one of the BOJ board's most hawkish members, proposed raising the benchmark rate to 1.25% at the July meeting. Ten-year JGB yield rises 2 bps to 3.010% after earlier touching 3.015%, highest intraday level since Sept. 1996.

 

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