Reported Earlier, Japan 10-Year JGB Auction 0.741% Vs. 0.596% Prior
Portfolio Pulse from Benzinga Newsdesk
Japan's 10-Year JGB (Japanese Government Bond) auction yield has increased to 0.741% from the previous rate of 0.596%. This indicates a rise in yields which may affect related ETFs such as BBJP, DXJ, and EWJ.
February 01, 2024 | 5:27 am
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The rise in Japan's 10-Year JGB yield could lead to a decrease in the price of BBJP as higher yields often make existing bonds less attractive.
BBJP, which includes Japanese government bonds in its holdings, may see a decrease in bond prices due to the auction result indicating higher yields. Bond prices and yields have an inverse relationship.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
DXJ, which is affected by Japanese economic indicators, might experience indirect effects due to the rise in JGB yields, potentially signaling a shift in economic policy or investor sentiment.
DXJ, which focuses on Japanese equities hedged against the yen, may be indirectly impacted by the JGB yield change as it could reflect broader economic trends or policy shifts that might affect equity markets.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
EWJ, an ETF tracking Japanese stocks, may see minimal direct impact from the JGB yield increase, but it could be affected by any long-term economic implications of changing bond yields.
EWJ may not be directly impacted by the JGB yield increase as it tracks equities, not bonds. However, significant changes in bond yields can influence economic conditions that affect the stock market.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 40