Mr. JGB Says End of BOJ’s Negative Rate Won’t Set Yields on Fire
- Saito says lower 1% range is highest 10-year yield would go
- Sees labor shortage helping BOJ reach its stable price goal
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Japan’s bond market will largely take in its stride any normalization steps by the central bank this year, according to a former finance ministry official known for his key role in reforming management of the country’s issuance of debt.
“Japanese long-term yields won’t climb much beyond 1%, even if the Bank of Japan revises its yield curve control program or raises its short-term policy rate,” said Michio Saito, known as Mr. JGB, in an interview last week.