HALISTER1: JGBs May Consolidate With Eye on Japan Factors in May, DIAM Says

JGBs May Consolidate With Eye on Japan Factors in May, DIAM Says

(Bloomberg) -- Japan-related factors such as prospects for sales-tax hike and fiscal spending may be a major focus for JGBs ahead of G-7 Summit later this month, says Nobuto Yamazaki, executive fund manager at DIAM, in an interview.
  • “Pressure for consolidation is likely to strengthen as market players assess investor needs,” says Tokyo-based Yamazaki, highlighting 10-year JGB auction on May 10 and 30- year sale on May 12
  • Says U.S. nonfarm payrolls due tonight are unlikely to have a huge impact on JGBs unless the data are extremely strong or weak; forecasts 10-year yield in range of -0.140% to -0.070% for coming week
  • Yield on 10-year JGBs now down 1 bp at -0.120%
  • NOTE: G-7 Summit is scheduled in Ise-Shima in western Japan on May 26-27
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Nobuto Yamazaki (DIAM Co Ltd)

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