Pimco Not Ready to Buy JGBs as Japan Inflation Expectations Rise

Pacific Investment Management Co. isn’t ready to increase holdings of Japanese government bonds as the nation’s policy makers seek to overcome deflation.

“There’s no need to be in a hurry to buy JGBs at the moment,” with 10-year yields around 0.8 to 0.9 percent, Tomoya Masanao, head of portfolio management for Japan at Pimco, the operator of the world’s biggest bond fund, said in an interview in Tokyo. “I used to think the chance of 2 percent inflation in Japan was close to zero, but now, while the likelihood of that is not high, it’s certainly higher than before.”