11 ordspråk av Shinji Kunibe
Shinji Kunibe
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It was just a matter of time before 10-year yields reached 2 percent. The gain in stocks is helping add to negative sentiment about holding longer bonds.
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Bond yields, especially five-year ones, are reaching a fair level to reflect the outlook for a policy shift.
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The change in the index will be slightly supportive for bonds.
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I was surprised to see speculation of a policy change grow stronger. Bonds tumbled as stocks rallied on the solid economy. Yields are to rise in the next several months.
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The economy may not withstand higher interest rates. Core prices should have a stable gain of around 0.8 percent before increasing rates.
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It's time to take off bets on the curve flattening, it's been a great run. Some investors had been betting on up to two rate increases this year but the central bank isn't likely to go past one.
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Investors were more sensitive to bond negative events this week. Bonds were sold ahead of the report on core prices yesterday and I bet people who held medium-term notes, such as five-year securities, lost a lot of money.
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Concern about inflation in overseas markets increased speculation that Japan's central bank will move.
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The gain in stocks is hurting demand for bonds. Recent reports showed the economy is staying strong and inflation is returning to Japan.
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People want to secure a higher coupon for tomorrow's sale and they are selling. It is hard to buy notes as people assess when the BOJ will push up rates.
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Investors will be reluctant to buy bonds ahead of the five-year notes sale today. There is a concern bond yields will keep rising and the central bank is desperately seeking to raise interest rates.
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