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Why do US bond yield rise when Japanese bond yields rise?

1. The Mid West industries reported increase in productivity causing bond yields to rise because the market responded by selling off safe haven bonds. The result was an increase in bond yields reflecting a optimistic indication that industry is recovering as evidenced by higher stock prices and a stronger dollar.

2. Japanese bond yields rose after Bank of Japan announced its bond buying policy. A similar pattern occurred in 2010 after the fed announced it would buy bonds.

3. Why do bond yields rise in Japan and US when the central banks buy bonds? Are the higher yields in the US and Japanese markets causing a rippling affect in other financial markets? Or does the higher yields in the Japanese bond market directly affect the yields in the US market?

http://online.barrons.com/article/SB50001424052748704509304578510842660272384.html

4. Increased bond buying increases bank reserves and increases money to loan to expand productivity.

5. Higher bond yields cause investors to sell assets to cover losses on margin loans If bond yields continue to climb in Japan, we can expect yields in the US to climb, also.

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