“The central bank wants to change monetary policy. Economic sentiment looks bright.”
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“The drop in the yen is a source of inflationary pressure. It will weigh on bonds.”
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“Investors are buying bonds as they realize a policy shift is not so easy when the government opposes it. Expectations for a change were too excessive.”
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“Bond yields are set to go higher. With the U.S. economy expanding and reports suggesting Japans growth is on a firm footing, its difficult to justify buying bonds.”
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“Mutos comment reversed sentiment among investors and it is a reason to sell bonds. Theyre now thinking the economy is still recovering and yields wont keep on falling.”
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“Investors are thinking the BOJ may change its monetary policy sooner than expected and thats why bonds are falling.”
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“The yens strength is a shackle for the central bank that keeps it from shifting monetary policy. Theres a risk bond yields will decline in the long run.”
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“The time to reconsider the value of five-year notes arrived. I am thinking about buying five-year notes as their yields rose too much. A trade betting on flattening is about to lose its charm.”
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