HALISTER1: Japan 10-Year Yield Could Reach 0.45% by Year-End, Nikko AM Says

Japan 10-Year Yield Could Reach 0.45% by Year-End, Nikko AM Says

(Bloomberg) -- Ten-year Japanese govt bond yield could rise to 0.45% by year-end, buoyed mainly by a recovery in the U.S. economy which may boost Treasury yields to 3%, Naoki Kamiyama, chief strategist at Nikko Asset Management in Tokyo, said in an interview.
  • Even within a yield-curve control framework, economic environment should pick up enough for BOJ to accept a gradual rise in long-term yield
  • BOJ won’t need to do anything for some time, meaning 10-yr JGB yield could rise to 0.45%
    • 20-year JGB yield may reach 1%
  • No matter who’d won the U.S. election, recovery trend in the U.S. economy wouldn’t have changed though the speed probably quickened on Trump’s win, Kamiyama says
  • Sees Nikkei 225 reaching 22,500 yen at year end
  • NOTE: 10-year JGB yield slipped to 0.085% Thursday; it rose to a one-year high of 0.15% on Feb. 3, spurring the BOJ to conduct an unlimited fixed rate bond purchase operation; 20- year yield was at 0.675%
  • NOTE: Nikko Asset’s AUM is around 17.9 trillion yen ($159b)
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Naoki Kamiyama (Nikko Asset Management Co Ltd)

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