Bond Markets Have Picked Up the Wrong Signal From Japan

Reports of the Japanese central bank tapering have been exaggerated.

This week, the Bank of Japan bought a less-than-expected amount of long-dated Japanese government bonds: It announced it would buy ¥190 billion ($1.7 billion) worth rather than an expected ¥200 billion at a scheduled auction. That was enough to rattle the market, as investors conjectured the BOJ had begun tapering its bond purchases by stealth, thereby effectively tightening monetary policy. Government bond yields have ticked up globally in recent days, largely... Nguồn: www.wsj.com