Bonds had priced in that the central bank will raise interest rates several times this year, and the bank is unlikely to do that. The yield curve flattened too rapidly, so I'm taking off such bets.
More Quotes from Tsutomu Kawasaki:
Yields are set to climb as we see signs of inflation. Fukui's comments assured us he has not given up the plan to shift monetary policy.Tsutomu Kawasaki
The time to sell debt is approaching. The production data showed Japan's economy is expanding and it may give the central bank more confidence to change policy. Bonds will probably stay heavy.
Tsutomu Kawasaki
Keeping rates near zero percent is creating concern among people in the market that inflation may speed up years from now. That's causing yields on long-term debt to jump.
Tsutomu Kawasaki
There's speculation that the upward trend will continue for economic growth and stocks. There's no need rush and buy bonds amid the risk that rates will rise.
Tsutomu Kawasaki
Nakagawa's comment on monetary policy will probably keep bonds strong. Government pressure on the Bank of Japan not to change policy will put upward pressure on debt.
Tsutomu Kawasaki
The selling was just too excessive and yields look high enough to be attractive. The central bank has assured it will keep rates near zero for a while, which makes people feel safer about buying.
Tsutomu Kawasaki
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