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4 Mar 2015
JGB yields downtrend remains in place – BAML
FXStreet (Barcelona) - Shuichi Ohsaki of BofA-Merrill Lynch, explains that as long as BoJ continues to purchase JGBs, the downtrend in yields remains firm.
Key Quotes
“Based on the recent yield rise and heightened volatility, concern has not been completely dispelled, but as long as the BoJ continues its large-scale JGB purchases, the downward trend in yields will probably remain in place.”
“We expect 10yr yield to drop below 0.2% and head toward 0.1% in 2015 with global yields lowering.”
“At the same time, trading by the city banks in the secondary market has dropped dramatically since the BoJ expanded QQE, and with JGB market liquidity declining, there is a growing risk of volatility increasing.”
Key Quotes
“Based on the recent yield rise and heightened volatility, concern has not been completely dispelled, but as long as the BoJ continues its large-scale JGB purchases, the downward trend in yields will probably remain in place.”
“We expect 10yr yield to drop below 0.2% and head toward 0.1% in 2015 with global yields lowering.”
“At the same time, trading by the city banks in the secondary market has dropped dramatically since the BoJ expanded QQE, and with JGB market liquidity declining, there is a growing risk of volatility increasing.”