The US 30s retreated back under 5% following the moves from Japan, luring investors back to long-maturity bonds for the first time in weeks. The gains unfolded even following President Donald Trump’s slew of tariff announcements and the passing of his signature tax bill in the House of Representatives weighed on sentiment. A simple questionnaire from Japan’s finance ministry certainly had the desired impact, beats a social media post!
We believe the move from Japan demonstrates central banks will endeavour to stop long-dated bond yields pushing much higher.