Eurozone peripheral bonds driven by BoJ policy

As yesterday's post notes, the Federal Reserve's monetary policy has an impact on financial markets and other economies.

However, so does the Bank of Japan's, according to this Bloomberg report.

Euro-area peripheral bonds are hooked on Japan’s monetary stimulus.

The CHART OF THE DAY shows Europe’s peripheral bond rally stalled this month as the yen strengthened versus the euro. Last week the Bank of Japan refrained from adding to the 60 trillion yen ($589 billion) to 70 trillion yen poured into the monetary base each year that has encouraged Japanese investors to put money into higher-yielding European assets.

See chart