Reported Earlier, Japan 10-Year JGB Auction 1.048% Vs. 0.857% Prior
Portfolio Pulse from Benzinga Newsdesk
The latest auction for Japan's 10-year JGBs saw a yield of 1.048%, up from the previous 0.857%. This increase in yield could impact ETFs with significant exposure to Japanese bonds and equities.
June 04, 2024 | 5:03 am
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NEGATIVE IMPACT
BBJP, an ETF with significant exposure to Japanese equities, may see short-term volatility due to the rise in Japan's 10-year JGB yield.
The increase in JGB yields could lead to higher borrowing costs and impact corporate profits, affecting Japanese equities and consequently BBJP.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
DXJ, an ETF focused on Japanese equities hedged against currency fluctuations, might face short-term pressure due to the higher JGB yield.
Higher JGB yields can increase borrowing costs and affect corporate earnings, impacting Japanese equities and thus DXJ.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
EWJ, an ETF with broad exposure to Japanese equities, may experience short-term volatility due to the rise in Japan's 10-year JGB yield.
The rise in JGB yields could lead to higher borrowing costs and impact corporate profits, affecting Japanese equities and consequently EWJ.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80