HSBC Maintains Bearish View on Japanese Government Bonds as 10-Year Yield Hits 2.765%

HSBC1.99%
According to Jin10, HSBC maintained its "moderately bearish" view on Japanese government bonds on July 23. Justin Heng, the bank's Asia-Pacific rates strategist, noted that Japanese policymakers are seeking ways to encourage pension funds and retail investors to purchase more domestic bonds, though measures such as adjusting the Government Pension Investment Fund's asset allocation "may require time for coordination and approval" and could take until 2027 to implement. HSBC expects yields to rise in the near term. The 10-year Japanese government bond yield rose 3 basis points to 2.765% as of July 23.
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