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Japan's benchmark government bond yields hit a nine-year high, threatening to force the central bank to intervene again


  JPN's 10-year government bond yield hit a nine-year high on Tuesday amid a global sovereign bond sell-off and a sharp rise in interest rates in Beijing.

  At the time of writing, the yield rose to 0.66 per cent, the highest level since 2014, raising the possibility that the Bank of Japan (BoJ) may use unplanned bond purchases to curb the rally.

  Since adjusting the parameters of Yield Curve Control (YCC) on July 28, the central bank has intervened in the market twice, and investors are trying to assess the central bank's tolerance for the level and pace of rise in yields.

  The central bank's move was intended to allow the 10-year yield to eventually rise to 1%, but not too quickly. However, the sharp rise in US government bond yields and rising domestic inflation have given JGB yields strong upward momentum and increased pressure on the boj to adjust policy further.

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