Pimco Says BOJ Rate Hike Has Put Japanese Bonds Back on the Map
- Longer-term impact of BOJ hike could be ‘significant’: Masanao
- Domestic flows into Japanese bond markets expected to rise
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The potential scale of the Bank of Japan’s policy shift may be more than some are expecting and lead to renewed interest in Japanese bonds from investors who might have previously shied away from the securities, according to Pacific Investment Management Co.
The central bank’s “policy evolution should usher in a period of normalization for Japanese bond markets, eventually attracting investors at higher yields who have been hesitant to invest over the past decade,” Tomoya Masanao, Pimco’s co-head of Japan and co-head of Asia-Pacific portfolio management, wrote in a report.