Superbull Sano Says Japan 10-Year Yield Last to Go Sub-Zero
- Tokai Tokyo's Sano sees 20-year yield at 0.1% to 0.75%
- Superlongs to remain positive-yield `battlefield:' Sano
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Even Japan bond superbull Kazuhiko Sano, the strategist who made three daring yet accurate projections as the 10-year yield plunged toward zero, sees limits to the rally in superlong debt.
The yield on 20-year government bonds will hold in a 0.1 percent to 0.75 percent range this fiscal year as domestic institutional investors such as pension funds aim for positive yields, Sano, chief bond strategist at Tokai Tokyo Securities Co., said in an April 5 interview. Foreign investors and brokerages are unlikely to use such long-maturity debt as they seek profits buying and selling between the Bank of Japan and using currency swaps, he said.