Economics
Dealers at Ground Zero of Japan’s Bond Rout Say Time to Buy
- Primary dealers see 10-year yield at -0.15 percent by year-end
- BOJ must ease this month to ignite inflation expectations: UBS
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Japan’s primary dealers are saying the worst bond rout since 2013 is a buying opportunity as benchmark sovereign yields will stay negative into 2017.
Ten-year yields will finish the year at minus 0.15 percent and remain there to the end of March, from minus 0.065 percent at 10 a.m. on Thursday in Tokyo, according to the median estimate in a Bloomberg survey of 13 of the brokerages, who are obligated to participate in debt auctions. The most bullish forecasts come from UBS Securities Japan Co. and Tokai Tokyo Securities Co. They both see a return to July’s record low of minus 0.3 percent at year-end.