HALISTER1: Asahi Life Asset Considers Adding Super-Long JGBs After Brexit

Asahi Life Asset Considers Adding Super-Long JGBs After Brexit

(Bloomberg) -- Asahi Life Asset Management may increase holdings of super-long tenor JGBs that offer better returns, according to senior fund manager Yoshihiro Nakatani.
  • Plans to “overweight” two-year and longer-tenors such as 15- to 30-year sectors
    • Short-term notes will probably bring capital gains as U.K.’s decision to leave EU further strengthens view that Bank of Japan will add to its stimulus soon, Nakatani says in interview
  • Bond yields likely to remain broadly under downward pressure while duration will be neutral to benchmark
  • Any BOJ action at next meeting may temporarily boost yields as further easing is now priced in the market
    • Such move will turn around on speculation of monetary easing again
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Yoshihiro Nakatani (Asahi Life Asset Management Co Ltd)

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