Economic growth is better than what was forecast in October, though this needs to be balanced with the fact that inflationary pressures haven't built up as much. |
It's not a good time to hold bonds. Relative to economic fundamentals yields are too low. |
It's very symbolic. It indicates that monetary policy is back to normal and investors are discounting possible future rate hikes. |
Longer bonds will stay solid as inflation expectations won't grow significantly soon while shorter debt is difficult to buy amid speculation about a rate hike. The yield curve may flatten a bit more. |
With the data showing a 0.5 percent rise, the BOJ could take a step forward to shifting the policy without hesitation. |