According to Jinshi, the Japanese subsidiary of Pacific Investment Management Company (PIMCO) expects the Bank of Japan (BOJ) to raise interest rates as early as January next year. PIMCO is preparing to actively invest in ultra-long-term government bonds in anticipation of this policy shift.

Despite the geopolitical uncertainties and financial market instability observed in August, the BOJ appears committed to its path toward normalizing monetary policy. Japanese government bond yields have continued to rise, driven by weak investment and the BOJ's reduced bond purchases. Recent inflation data has further supported this upward trend.

Kakuchi, a representative from PIMCO, noted that the bond market situation is expected to improve within the next six months. The anticipated increase in demand could bring more stability to the market.