According to Jinshi, the Japanese subsidiary of Pacific Investment Management Company expects that the Bank of Japan will raise interest rates again as early as January next year and is ready to actively invest in ultra-long-term government bonds. Despite geopolitical uncertainties and financial market instability in August, the Bank of Japan's policy of normalizing monetary policy has not changed.
Due to weak investment and the Bank of Japan's reduction in its purchases of Japanese government bonds, Japanese government bond yields are still on an upward trend, and inflation data released last week further strengthened this trend. Kakuchi said that the situation will improve in about six months, and the increase in demand may bring stability to the entire bond market.
