But if he makes remarks that are more hawkish than the market is expecting to hear, US Treasuries may be sold heavily and that may hurt the JGB market. |
Forecasts were too high because the government spent less than expected. |
Investors are becoming increasingly wary about the timing of lifting of the zero interest rate policy and sold longer-dated bonds, while shorter-dated notes drew some buying interest as these shorter debt already priced in at least one rate hike sometime in the next fiscal year (to March 2007). |
It's time to buy. Short-dated debt, such as five- year notes, have fallen too much. |
The yields in the short and midterm sectors have risen to levels that start to price in a possible end to zero-interest rates, as well as the end of the quantitative easing policy. |