Japanese government bonds displayed divergent trends during Tokyo's early trading session, yet they may find support due to expectations that the Bank of Japan will maintain current interest rates at its April 27-28 policy meeting. Two analysts from Barclays' fixed income, foreign exchange, and commodities research division noted in a report, "By the time of the April meeting, the likelihood of a clear stabilization outlook in the Middle East appears limited." They further indicated that, amid deteriorating market sentiment, Bank of Japan Governor Kazuo Ueda has continued to emphasize two-sided risks. The analysts added, "Given the challenges in properly assessing confidence and risks surrounding its core outlook, the Bank of Japan appears more likely to postpone any interest rate hike until June." The yield on two-year Japanese government bonds rose by 1 basis point to 1.380%, while the 10-year bond yield remained unchanged at 2.415%.
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