Tatsuo Ichikawa
Tatsuo Ichikawa
carefully eventual expecting gradually increase interest listening market markets players preparing start
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.
auction below buying concerned demand might okay people percent yields
Some people were concerned that with yields below 2 percent there might not be enough demand for the bonds. However, the auction went okay and that spurred buying of futures.
bonds buying change investors match supported
Bonds are being supported by investors buying to match the change in the index.
certainly comments curve factors market rise room yields
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.
expecting factor hike increase increases market rate rates selling unless
Some market participants are expecting no rate increase unless CPI increases to 1 percent, but if Mizuno suggests the BOJ can hike rates before, it could be a selling factor for bonds.
debt fourth government high increase lure quarter rate reflect sold yields
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.