Global fund managers grow bullish on Japanese government bonds
Signs of recovering domestic demand and a more supportive policy backdrop add to the appeal of elevated yields.
Global fund managers are showing increasing enthusiasm for Japanese government bonds as signs of a rebounding domestic economy and a more supportive policy environment enhance the allure of high yields, according to recent reports. T. Rowe Price Group, which had previously reduced its exposure to Japanese bonds earlier this year, now leans towards bonds with longer terms.
Allianz Global Investors is cautiously increasing its holdings of intermediate- and long-dated bonds, while BNP Paribas Asset Management has expanded its position in super-long debt. This shift represents a U-turn from earlier this year when high yields were insufficient to offset concerns that the Bank of Japan was raising rates too slowly, fiscal spending would exacerbate debt supply, and domestic investors remained hesitant.
Optimism about further Bank of Japan rate hikes and indications of a resurgence in demand from insurers have bolstered fund managers' confidence in capitalizing on these attractive yields.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
