For the first time since February, 5Y JGB yields have spiked above BOJ policy rates (to -9.5bps), but despite a policy of maintaining 10Y yields and attempting to steepen the yield curve, it appears Kuroda and his cronies have lost control as the short-end of the Japanese bond market is collapsing.
Broadly speaking it seems investors are dumping JGBs in favor of ‘cheap’ US Treasuries once again…