As the new policy framework has outdone prior market expectations both in terms of quantity and quality, it has taken time for market participants to digest the content and its effects, and this led to increased uncertainty in the JGB market.
Such developments came to a pause toward end-April, but long-term interest rates in the United States rapidly rose from the beginning of May due to increased speculation that the Federal Reserve might taper the pace of its asset purchases, and the effects of this started to spread to Japan.