Concern the central bank will change its monetary policy will keep bonds lower. Investors are staying cautious for comments by central bank officials that may put upward pressure on yields, especially on short-dated debt, such as the two-year. |
Yields are set to rise, so the government's borrowing costs may increase. There's no doubt that the economy is getting better and Japan is coming closer to the end of deflation. |
Yields will have a bias to rise toward next year. The economy will probably be in good enough shape to push up stocks and cement speculation about an end to deflation. |