Higher yields is the name of the game right now and despite efforts by the BOJ to try and limit that, they might be finding it tough to swim against the current – even in a market that they pretty much monopolise. 10-year Treasury yields are also seen up to 4.85% today and that is driving a selloff in global bonds which is hard to go up against.
10-year JGB yields (%) daily chart
As much as the BOJ does not want yields to rise up too quickly to its 1% threshold, that may be a case in point that they have to deal with sooner rather than later if the selling in broader markets keep up.