An Imported Rise in Japan’s Yields Could Tempt Bond Bulls
- JGB curve may steepen with Treasuries after U.S. election
- But weak inflation outlook suggests move wouldn’t last
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If the U.S. election manages to catapult Treasury yields and their global peers higher, that could create an opportunity for Japanese bond bulls, given the muted outlook for inflation in the Asian nation.
Japan’s yield curve has been steepening alongside its American counterpart, as the reflationary theme that has taken hold in Treasuries permeates global bond markets. The 10-year, 30-year curve is close to its highest since April 2019.