HALISTER1: BOJ Pinning Down 10-Year Yield Makes 20-Year Attractive: Mizuho

BOJ Pinning Down 10-Year Yield Makes 20-Year Attractive: Mizuho

(Bloomberg) -- Bank of Japan’s policy of keeping benchmark 10-year yield around zero will keep the entire curve in check, said Noriatsu Tanji, senior bond strategist at Mizuho Securities.
  • Favors long 20-year debt given its carry and roll-down returns, he said in phone interview Tuesday
  • No policy change from BOJ this year
  • Fed unlikely to quicken pace of rate increases because such action risks dollar strength
  • U.S. yields will eventually peak out and weigh on Japanese yields
  • NOTE: Japan’s 10/20-year yield spread now at 59bps after reaching 62bps on Feb. 8, widest since February 2016
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
8301 JP (Bank of Japan)

People
Noriatsu Tanji (Mizuho Securities Co Ltd)

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