Japan Seen Stuck With Negative Yields on 70% of Bonds for 2016
- Primary dealers' median forecast for 10-year yield at -0.1%
- `The BOJ has dominated the bond market,' JPMorgan Chase says
Off the Charts: Japan Government Bonds
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Japanese primary dealers say negative bond yields are here to stay in 2016, and room for capital gains has run out.
Nine of 13 respondents to a poll conducted last week predict the benchmark 10-year Japanese government bond yield will end the year below zero, after sinking to a record minus 0.135 percent on March 18. The lowest forecast of minus 0.2 percent comes from Morgan Stanley MUFG Securities Co., while the median of minus 0.1 percent is in line with analyst estimates for Switzerland.