Man Who Saw 0.5% 10-Year Yield Now Predicts 0.25%: Japan Credit

The strategist who predicted Japan’s 10-year bond yield would plunge to 0.5 percent now says it’s likely to reach a record 0.25 percent as a failure to meet economic targets may cost Prime Minister Shinzo Abe his job.

The benchmark Japanese government bond yield may slide to that level in the year starting next April from 0.77 percent today, said Kazuhiko Sano, the chief bond strategist at Tokai Tokyo Securities Co. When the rate was at 0.85 percent in May 2012, he forecast it would reach 0.5 percent this fiscal year, presaging its drop to 0.315 percent on April 5.