Bond Bullies May Find BOJ a Softer Target After Kuroda Leaves
- Lack of ‘gravitas’ may embolden bond vigilantes to take on BOJ
- Wild swings in yen, Japanese debt underscore Kuroda’s power
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None of the names touted as the next Bank of Japan chief command the same authority in markets as Governor Haruhiko Kuroda, which will invite some investors to push even harder for higher bond yields, according to John Vail, chief global market strategist for Nikko Asset Management.
“None of them are probably as dovish as Kuroda, in terms of resolve,” he said of potential successors. “Philosophically, they might be in the same vein but they don’t have the same gravitas to continue to do such action as he has under tremendous pressure,” according to Vail, whose experience in Japan spans more than three decades.