According to BlackRock, America's decision to sell the euro to support the yen without prior notice to European policymakers increased geopolitical risks and further weakened the appeal of long-term government bonds. James Turner, the company's head of global fixed income in Europe, the Middle East and Africa, said that although the US intervention in the yen is unlikely to directly damage European government bonds, this unexpected operation indicates that cooperation between countries is “declining.” Turner said, “We are currently very unwilling to accept longer-term bonds because this is a volatile region in the sovereign bond yield curve. We don't want to risk term premiums because we continue to see geopolitical risks and the uncertainty of long-term debt.”

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