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.
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.
The failure of seven funding operations by the Bank of Japan is signaling expectations that policy makers will cut deposit rates.
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 BOJ's buying is way too big to the extent that they are buying almost all the debt sold in all maturities."
- Takafumi Yamawaki on Jan 14, 2015