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Hedge Fund BlueBay Is Shorting Japanese Bonds Until BOJ Breaks

  • Bank of Japan yield-curve control policy is untenable: Dowding
  • JGB yields have breached the upper end of BOJ’s tolerance
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WATCH: “The pressure is growing,” on BOJ Governor Haruhiko Kuroda, according to Bluebay’s Russel Matthews.Source: Bloomberg
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BlueBay Asset Management is gearing up for battle with the Bank of Japan.

As the BOJ escalates attempts to keep a lid on bond yields, BlueBay is betting the central bank will be forced to abandon a policy that’s increasingly out of sync with global peers. The BOJ’s so-called yield curve control is “untenable,” according to Mark Dowding, BlueBay’s London-based chief investment officer.