With the Bank of Japan scaling back bond purchases and local institutions not stepping in to buy, 30- and 40-year JGB yields have reached new highs — creating attractive opportunities for overseas buyers from Canada to Europe to Asia. MS suggests the Japanese Ministry of Finance may eventually need to cut back on issuance in response to market signals, though the timing remains uncertain.
Despite Japan no longer anchoring global bond markets, Morgan Stanley expects broader central bank policies will still push global interest rates lower over time.
This article was written by Eamonn Sheridan at www.forexlive.com. Read More Details
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