Top Fund Manager Betting Bank of Japan to Push Yields Lower
- BOJ’s Kuroda says there is ‘sufficent’ chance of more stimulus
- A deepening of negative interest rates is possible: Manulife
This article is for subscribers only.
The Bank of Japan’s policy review will probably cause government bonds to rise again, making even notes yielding less than zero attractive, according to Manulife Financial Corp.’s Japanese money management unit.
JGB yields have jumped since July 29 when the BOJ disappointed some investors by refraining from expanding debt purchases or deepening negative-interest rates. A policy review, announced the same day, has led some people to speculate the BOJ may reduce stimulus measures. Head of fixed income at the unit, Keisuke Tsumoto, who has beaten Japan’s bond benchmark for seven straight years, says that is unlikely and the jump in yields offers investors a buying opportunity.