Pimco Says Japan Long Bond Rally Probably Over as Prices Plunge
- Ten-year bonds suffer biggest rout since May 2013 on Tuesday
- BOJ balance sheet rises to $4.26 trillion, rivaling the Fed’s
BOE's Rate Balancing Act for Avoiding a Recession
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Pacific Investment Management Co. says a record-setting rally in long-term Japanese government bonds has likely run its course because the central bank has pushed monetary policy as far as it can. Bonds fell Tuesday by the most in three years.
“We have probably seen the low of the yield of the super long JGBs,” Tomoya Masanao, Pimco’s head of portfolio management in Japan, wrote in an e-mail Monday. “The BOJ hit its limit,” he wrote in a report on the company’s website last week.