Japan's 3.0%–3.5% JGB yield ceiling: the level traders will test

Reuters reported July 16 that Japan likely sees 3.0%–3.5% as the defence line for 10-year JGB yields — beyond which authorities would face pressure to buy more bonds. With the BOJ's policy rate at 1.0% and no hike expected before October, the long end of the yield curve bears the pressure, giving traders a clear level to test.