Japan's 10-year bond yield hits lowest since August 2016
- Japan's 10-year yield slips to lowest since August 2016.
- US 10-year yield hits a 21-month low.
- Draghi's dovish talk has put a bid under government bonds.
Japanese bond yields are feeling the pull of gravity a day after the European Central Bank President Draghi dropped a clear hint that the central bank could carry out more rate cuts to support the Eurozone economy.
The yield on Japan's 10-year government bond fell to the lowest level in nearly two years earlier today and was last seen trading at -0.14%.
The US Treasury yields also declined in the overnight trade with the 10-year yield hitting a 21-month low of 2.06%.
The Japanese government bond yields may continue to remain under pressure as the Bank of Japan (BOJ) is widely expected to keep key policy tools unchanged on Thursday and signal readiness to do more, if required.
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