Speculation of a policy shift grew over time and pushed up bond yields. The economic recovery was strong and the stock rally continued, keeping an upward bias on yields.
More Quotes from Norihisa Takao:
Yields are close to their highs, and so bonds look attractive. Yields already reflect speculation that an end to the policy will come in the second quarter of next year at the earliest. Any signs of a weak economy or government opposition to changing policy may trim those bets.Norihisa Takao
The central bank won't raise rates until the year starting April 2007.
Norihisa Takao
Bonds are reacting to the drop in stocks. The machinery orders report is another plus.
Norihisa Takao
Buying of bonds gained momentum after the sudden drop in the Nikkei. Some investors are saying consumer prices won't rise as much as the central bank expects.
Norihisa Takao
People are snapping up medium-term debt on bets the BOJ will take its time raising rates after a shift in policy.
Norihisa Takao
Readers Who Like This Quotation Also Like:
Based on Topics: Economics QuotesI'll sign anything except bad legislation.
Kinky Friedman
Talent does whatever it wants to do. Genius does only what it can.
Eugene Delacroix
Depth must be hidden. Where? On the surface.
Janos Arany