Banks are sticking with forecasts for a weaker yen, even as they see less chance of extra Bank of Japan stimulus, citing a weakening relationship between the currency and bond yields.
Japan’s 10-year bond yields are likely to fall to fresh seven-year lows, JPMorgan Chase & Co. said, citing trading patterns.
JPMorgan Chase & Co. said it hired Takafumi Yamawaki as chief rates strategist in Japan from BNP Paribas SA, as it aims to strengthen its fixed income and forex research department.
Money market watchers say Bank of Japan Governor Haruhiko Kuroda risks crippling the foundation of the nation’s financial system to achieve his inflation target.
The failure of seven funding operations by the Bank of Japan is signaling expectations that policy makers will cut deposit rates.
Japan’s bonds gained for a second day as Europe’s sovereign crisis boosted demand for the relative safety of government debt.
"Low funding costs are supportive of economic growth."
- Takafumi Yamawaki on Aug 17, 2014