Bonds may find it difficult to rise as stocks are looking strong toward the year-end. Japan may have stable growth next year, leading to higher yields. |
Bonds will probably stay lower as traders may prepare for the auction. Bonds also will be capped by gains in stocks, along with rising U.S. Treasuries yields. |
Month-end demand is gone now that we're in a new month and what we're seeing is unwinding of recent flattening positions. |
Purchases by the public pension fund will become a stabilizer for the market. The fund will be a steady buyer of government debt with five-year and longer maturity, helping limit a rise in yields this year. |
That's likely where yields will be headed toward April. |
The faster decline in the GDP deflator could prompt government calls to forestall an early end to quantitative easing, but the data reflects balanced growth in the economy. |
The pension fund will probably invest most of its allocation in domestic debt because Japanese stocks have had a good rally over the past year and the value of bonds is low. Some money may be used to buy overseas bonds. |
The survey shows Japan's recovery is strengthening considerably. |
The trend is for higher yields given the outlook for economic growth. Consumer prices will probably turn positive after October. |
Yields will rise as the market prices in a policy change. |