Japanese Funds Call for Higher Yields as BOJ Stifles Returns
- Life insurers say they won’t buy unless yields rise over 1%
- Central bank has committed to keep 10-year yields close to 0%
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The Bank of Japan is caught in a quandary. To let bond yields rise or not.
Governor Haruhiko Kuroda wants to make longer-maturity debt more attractive by letting yields move higher, yet doing so will put pressure on his efforts to keep 10-year borrowing costs close to zero. He will eventually have to raise the target rate, say fund managers including Sumitomo Mitsui Asset Management Co., AllianceBernstein Japan Ltd., MassMutual Life Insurance and Daiwa SB Investments Ltd.