Investors will be reluctant to buy bonds ahead of the five-year notes sale today. There is a concern bond yields will keep rising and the central bank is desperately seeking to raise interest rates.
More Quotes from Shinji Kunibe:
Investors were more sensitive to bond negative events this week. Bonds were sold ahead of the report on core prices yesterday and I bet people who held medium-term notes, such as five-year securities, lost a lot of money.Shinji Kunibe
I was surprised to see speculation of a policy change grow stronger. Bonds tumbled as stocks rallied on the solid economy. Yields are to rise in the next several months.
Shinji Kunibe
Bond yields, especially five-year ones, are reaching a fair level to reflect the outlook for a policy shift.
Shinji Kunibe
People want to secure a higher coupon for tomorrow's sale and they are selling. It is hard to buy notes as people assess when the BOJ will push up rates.
Shinji Kunibe
Concern about inflation in overseas markets increased speculation that Japan's central bank will move.
Shinji Kunibe
It was just a matter of time before 10-year yields reached 2 percent. The gain in stocks is helping add to negative sentiment about holding longer bonds.
Shinji Kunibe
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