Fukui's comments were just very hawkish overall. There's certainly room for short-term yields to rise and the yield curve to flatten more as the market factors all this in.
Fukui's comments were just very hawkish overall. There's certainly room for short-term yields to rise and the yield curve to flatten more as the market factors all this in.
Government debt sold off too much. Yields are high enough to lure investors. Yields already reflect speculation that a rate increase may come in the fourth quarter of 2006.
There was a risk he would make more hawkish comments. He reaffirmed that even if the Bank of Japan ends its easy monetary policy it probably won't be increasing interest rates anytime soon.
Market players are expecting that Mizuno and Fukui may start preparing the markets gradually for an eventual increase in interest rates, and are listening carefully to their speeches.
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© 2020 Inspirational Stories