Bond Report: Treasury yields slip after BOJ affirms loose policy, but still log largest monthly climb since April

U.S. Treasurys rose Tuesday, pushing long-dated government yields lower, after the Bank of Japan affirmed its easy-money policy prescription, leaving the country one of the last with an aggressively accommodative plan in place a decade after the 2007-’09 financial crisis — an environment that can make richer-yielding Treasurys more attractive.

The BOJ’s latest policy update comes just ahead of the Federal Open Market Committee, which is set to update its statement on Wednesday afternoon, offering fresh guidance on the economic outlook — if not a rate hike — which could influence fixed-income trading.

On Tuesday, however, Treasurys mostly took their cues from Japanese 10-year government paper, which rallied by the most since 2016, pushing sovereign debt rates decidedly lower.

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