RISING JGBS:

Another potential explanation for the plummet is the recent rise in the JGBs. One big goal of the new Bank of Japan (BOJ) president’s asset purchase program was to bring 10-year and longer-dated JGBs down. Exhibit 2 shows that as economic data improved in mid-April and early May, the 10-year yield increased from below 0.40% to temporarily breaking 1% last Thursday.