Germany's Yield at 7-Month High Versus Japan's Before BOJ Meets
- Spread is too wide given monetary easing of ECB, BOJ: Mizuho
- Twenty-three of 41 analysts expect BOJ easing on April 28
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Germany’s yield premium over Japanese government bonds reached the widest since September amid speculation the Bank of Japan may ease policy again this week.
Even after the European Central Bank kept its stimulus unchanged last week, both institutions are engaged in unprecedented asset-buying programs and negative interest rate policies in efforts to revive growth and inflation. The 10-year bond-yield difference is too wide, according to Mizuho International Plc. The spread should narrow after the BOJ’s decision on April 28 as low JGB yields make foreign bonds more attractive to Japanese investors, said Peter Chatwell, head of rates strategy at Mizuho in London.