The Japanese regional bank with the best recent record for trading bonds has started buying Japanese government debt for the first time in a decade.
Iyogin Holdings started testing the $7 trillion market in April with small purchases of superlong bonds, marking the bank’s first Japanese government bond (JGB) investment in 10 years, according its CEO Kenji Miyoshi.
The bank’s move comes at a time when many insurers and foreign investors are avoiding JGBs, wary of yields rising due to 91AV原创 fiscal policy and inflation. Miyoshi expects the Bank of Japan policy rate to rise to around 1.5% by the end of next year, adding there is also a possibility that the BOJ could accelerate the pace of tightening, including by implementing larger 50-basis-point increases rather than the usual 25-basis-point moves.
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