MUFG Plans Gradual Return to Japanese Government Bonds
The bank will rebuild its bond position cautiously as its markets chief warns that risks of higher yields remain.
Key takeaways
- MUFG plans to rebuild its Japanese government bond position gradually.
- Atsushi Yamashita expects 10-year yields to peak at about 3.2%.
MUFG Bank plans to gradually rebuild its position in Japanese government bonds, while remaining alert to the risk of further yield increases, its global markets chief Atsushi Yamashita said.
Yamashita expects 10-year Japanese government bond yields to peak at about 3.2%. That would be just above the 3.115% level reached earlier this month, a three-decade high.
He said MUFG would assess interest-rate levels as it rebuilds its position. The bank remains concerned that yields could rise further if the Bank of Japan struggles to contain inflation or Prime Minister Sanae Takaichi fails to reassure investors about government finances.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
