Japanese Govt. Bonds slips as investors wager on steepening yield curve
Japanese government bond prices slipped on Monday as investors wagered that the Bank of Japan could adjust its policy to steepen the yield curve next month to address the side-effects of negative interest rates.
BOJ Governor Haruhiko Kuroda said that if the bank were to ease monetary policy further, it would aim at pushing down short- and medium-term interest rates without flattening the yield curve too much.
His comments fanned expectations that the BOJ will cut short-term interest rates in order to allow longer-dated bond yields to rise at its next policy meeting in October.