Makoto Yamashita, chief rates strategist in Tokyo at Deutsche Securities, a unit of Deutsche Bank AG, comments on the Bank of Japan’s meeting today and the impact on bonds from the nation’s strongest earthquake on record.
“The BOJ is providing ample liquidity, and bond yields mainly in short- and medium-term zones are declining sharply amid speculation there may be more easing at today’s monetary policy meeting.”
“Concerns over fiscal risks and an increase in debt sales are weighing on longer-term bonds. Investors are reluctant to buy super-long notes ahead of a 20-year bond auction. The yield curve will likely steepen.”